22.08.2026

"Canada-U.S. Trade Talks Intensify Before Tariff Deadline"

Talks between Canada and the United States are intensifying as the clock ticks down toward a midnight deadline that could see a steep 50 per cent tariff imposed on a range of Canadian exports

Negotiations between Canada and the United States are escalating as a midnight deadline approaches, which could lead to significant tariffs being imposed on a variety of Canadian exports. Should an agreement not be reached, as of August 19, goods including Canadian alcoholic beverages, cement, honey, and hockey sticks may be subject to new tariffs at the U.S. border.

This collection of goods represents approximately five percent of all Canadian exports to the United States, totaling around $28 billion annually. The tariffs are organized under three executive orders, which broadly focus on motor vehicles, dairy, and alcohol, though the actual items listed in U.S. President Donald Trump's orders cover a wider range of products.

The Dairy Order:

The items under the dairy order include various essential products such as milk and cream, whey, and milk protein concentrates, including casein. Additionally, goods like lactose, glucose, and fructose, as well as sugars and cane molasses, are targeted. This order also includes non-alcoholic beer and essential oils of peppermint.

The Alcohol Order:

With regards to alcohol, the order encompasses a broad range of products. This includes beer, wine, liquor, cider, and other fermented beverages as well as essential oils of grapefruit. A variety of wooden goods such as densified wood blocks, tableware, and marquetry items are also under scrutiny. Other specified items include skewers, ice cream sticks, bamboo products, basketwork, grease-proof paper, and hockey equipment, excluding balls and skates.

The Motor Vehicles Order:

The motor vehicles order encompasses an extensive assortment of goods. Natural honey, down feathers, and various animal parts such as tortoise shell and whalebone are included. Plants also feature prominently with items like tulips, live orchids, and different seeds and vegetable parts. Other products targeted include perfumes containing alcohol, makeup preparations, bakers' mixes, and synthetic paints.

An array of additional items is also part of this list, including household goods like candles and furniture fittings, bicycles and gym equipment, power tools, and even non-industrial diamonds. Notably, technology devices such as smartphones, cameras, and equipment containing semiconductors are included. Furthermore, various textiles, clothing items, and decorative pieces are also affected.

Among other goods, the order lists toys, puzzles, video game consoles, and collectibles such as postage stamps and antiques exceeding 100 years in age. There is a wide range of products that businesses and consumers in Canada could be affected by if the impending tariffs are enacted without resolution to ongoing negotiations.

The impending tariffs illustrate the complexities and challenges within Canada-U.S. trade relations and highlight the potential economic impact on a significant portion of Canadian exports. As both sides work towards a resolution, the stakes are high given the preeminent role of these industries in the Canadian economy.