Negotiators race to avert 50% US tariffs on $20 billion of Canadian imports set to take effect at midnight.
Canadian and US trade officials are holding last-minute talks to prevent 50% tariffs on approximately $20 billion of Canadian imports, scheduled to begin at 12:01 a.m. Wednesday. The measures target goods previously covered under the US-Mexico-Canada Agreement, raising concerns over broader market access disputes, including US tariffs on Canadian vehicles.
Earlier reports indicated no breakthrough in discussions between President Trump and Canadian officials, pressuring the Canadian dollar. Markets interpreted the lack of progress as a sign tariffs would proceed, though renewed negotiations offer a glimmer of hope for a delay or resolution.
A failure to reach an agreement could extend the loonie’s losses, while a last-minute deal or postponement may trigger a short-term rally in CAD.