President Donald Trump stated on September 12 that a trade agreement with Canada could be reached soon. The current dispute follows a failed attempt to finalize a deal in mid-August.
The US imposed 50% tariffs on approximately $20 billion worth of Canadian goods, including steel, aluminum, automotive parts, dairy, and alcohol. Canada responded with retaliatory tariffs of 15% to 50% on $20 billion of US exports, effective September 8.
Trump has invoked Section 338 measures, which authorize import bans on specific Canadian industries starting September 29. Current tariffs impact about 5% of bilateral trade between the two nations.
The administration cites Canadian dairy protections, agricultural import restrictions, and automotive subsidies as primary grievances. The USMCA trade agreement is also nearing a scheduled review.
