Canada Races to Avert Trump's 50% Tariffs as Midnight Deadline Hits

Canada and the United States were locked in last-minute negotiations on Tuesday as a midnight deadline approached for President Trump to impose 50% tariffs on nearly $20 billion worth of Canadian exports. The threatened levies, set to take effect at 12:01 a.m. Wednesday, would cover a broad range of goods including hockey sticks, wine, cement, dairy products and clothing, and would not exempt items compliant with the existing Canada-U.S.-Mexico free trade agreement.

Canadian officials Janice Charette and Dominic LeBlanc held talks with U.S. counterparts throughout the day, with negotiators expected to meet again before the deadline, according to CBC News. A key sticking point involved potential cuts to automotive tariffs, with Reuters reporting that the two sides were working to bridge gaps on that issue. The Canadian dollar weakened ahead of the deadline as markets priced in uncertainty over the outcome.

No deal had been announced as of the deadline window, leaving businesses and consumers on both sides of the border bracing for a significant disruption to a trading relationship that has been under strain for over a year.