---
title: "US and Canada Near Trade Deal, Tariffs May Ease"
url: https://www.hereaiken.com/2026/08/20/us-canada-trade-deal-tariffs-ease/
date: 2026-08-20T12:56:52-04:00
modified: 2026-08-20T12:56:52-04:00
author: "Pearl Hutto"
categories: ["Business"]
site: "HERE Aiken"
attribution: "HERE Aiken"
---

# US and Canada Near Trade Deal, Tariffs May Ease

*Source: [HERE Aiken](https://www.hereaiken.com/2026/08/20/us-canada-trade-deal-tariffs-ease/) — August 20, 2026 by Pearl Hutto*

A new trade agreement between the United States and Canada is nearing finalization, with negotiators meeting for three consecutive days. The discussions come after US President Donald Trump paused a new round of tariffs he had threatened to impose on various Canadian goods.

While specific details of the agreement have not been publicly announced, reports suggest it may address Canadian steel, aluminum, and automobiles, alongside US alcohol. US Trade Representative Jamieson Greer stated that the US is pleased with the progress, noting the deal eliminates some existing trade irritants with Canada. Greer emphasized that the agreement aims to protect American workers, jobs, and supply chains while strengthening the North American economy. He plans to brief Congress and US stakeholders on the details soon.

Canadian Prime Minister Mark Carney has reportedly asked Canadian provinces to reintroduce US alcohol to supermarket shelves. Nova Scotia Premier Tim Houston confirmed Carney’s request to end the boycott of US whiskey and other beverages, a measure most Canadian provinces implemented last year in response to Trump’s tariffs. Trump indicated that Canada has agreed to eliminate tariffs on US farmers, though specific agricultural sectors were not named. He also mentioned the US would reduce some of its tariffs on Canada by a small margin.

Canada has been seeking a deal to reduce or eliminate US tariffs on its steel, aluminum, automobiles, and lumber. Under a potential agreement, US tariffs on Canadian steel and aluminum could reportedly decrease from 50% to 25%. Additionally, the headline tariff rate on Canadian-made vehicles might be lowered from 25% to 15%. However, Canada’s dairy supply management program, which governs production quotas and sets pricing and import quotas on dairy, eggs, and poultry, is expected to remain intact, according to Trade Minister Dominic LeBlanc.

Business organizations on both sides of the border have advocated for a deal, warning that additional tariffs would harm both countries. Dennis Darby, president of Canadian Manufacturers and Exporters and an advisor to Carney on Canada-US trade, expressed optimism about a finalized deal, viewing it as a potential step toward returning to the tariff-free terms of the North American free-trade agreement, known as USMCA.