Deadline looms as Trump's 50 per cent tariffs set to take effect

U.S. President Donald Trump's latest tariff threat on $28 billion worth of Canadian goods is set to take effect just after midnight.

A spokesperson from the Prime Minister's Office confirmed Prime Minister Mark Carney spoke to Trump by phone Monday afternoon, but did not share any other details.

At an event in St. John's Monday before that call took place, Carney said in French that the federal government has a plan that "will cover all eventualities" if the latest round of tariffs are imposed and added that negotiations "are very intense and delicate."

Last month, Trump signed an executive order to impose 50 per cent tariffs on a variety of goods, from cement to hockey sticks, starting Aug. 19. The affected products account for about five per cent of Canadian exports to the U.S.

Trump is using section 338 of the Tariff Act of 1930 for these latest tariffs, which allows a president to impose tariffs on a country deemed to be discriminating against U.S. products.

The tariffs are set to take effect just after midnight on Wednesday.

Canada-U.S. Trade Minister Dominic LeBlanc and Janice Charette, the chief trade negotiator, have been in Washington since last week and sat down with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick on Monday.

LeBlanc said "our job is not done yet" as he ducked into a car, dodging reporters' questions on his way out of that meeting.

The U.S. is threatening this latest round of tariffs over a collection of irritants that include the provincial bans on American alcohol, lack of access for U.S. dairy due to Canada's supply management system and Canadian quotas for tariff-free U.S. auto imports.

The auto quota and the booze bans, in place in all provinces except Alberta and Saskatchewan, were instituted in retaliation to American tariffs on steel, aluminum and autos.

Greer has said Canadian retaliation is akin to something China would do.

Several premiers have said they're not interested in putting American alcohol back on the shelves. Last week, Ontario's Doug Ford said he'd be willing to make that concession in return for a "fair deal" on sectors hit hard by Trump's existing tariffs.

Canada is looking for relief on U.S. tariffs on metals, autos and softwood lumber, which the U.S. says receives unfair government subsidies.

Arnold Viersen, Conservative natural resources critic with a focus on forestry, said in a media statement that the tariffs and mill closures are causing "distress" in lumber towns.

“Vancouver-based Canfor announced the permanent closure of its Fox Creek sawmill in northwestern Alberta. The company cited U.S. tariffs and weak market conditions that reduced the mill’s productivity and competitiveness," Viersen said.

“In a town of less than 1,800 people, this closure will affect 74 good-paying jobs, leaving workers and their families struggling to pay their bills, support their children and maintain a stable life."

He called on the government to "keep its promise" and negotiate a deal with the U.S. that's good for Canadian workers.

That call is echoed by Bea Bruske, Canadian Labour Congress president. But she added the caveat that staying strong during tense negotiations means not being afraid to walk away from a bad deal.

"Canadian workers need a deal that protects good jobs, strengthens our economy and delivers real stability for workers and communities. Canada must be prepared to hold firm on our interests and our red lines, while also having a clear plan to support workers and communities if tariffs come into effect," she said in a statement Tuesday.

The tariffs also target Canadian honey; as much as 60 per cent of domestic honey exports go to the United States. The Canadian Beekeepers Federation said Monday the tariff would be devastating, and would likely cause prices to crash and force farms into bankruptcy.

This report by The Canadian Press was first published Aug. 18, 2026.

— With files from The Associated Press.

By The Canadian Press staff | Copyright 2026, The Canadian Press. All rights reserved.