Prime Minister Mark Carney is facing a challenge to secure support for a prospective trade deal with the US as a US-set deadline looms tonight, Friday, August 21, 2026. Negotiators must finalise the agreement by Friday night to prevent a new wave of additional US tariffs on various Canadian goods.
Manitoba Premier Wab Kinew has criticised the potential deal, stating that Canada "should fight" and avoid rushing into concessions. Mr Kinew also questioned why Canada would give up leverage by restoring US alcohol sales, despite indicating he would reluctantly do so for the benefit of all of Canada, while urging citizens not to purchase it.
Canada-US Trade Minister Dominic LeBlanc is scheduled to meet with US Trade Representative Jamieson Greer on Friday morning, following a Thursday meeting where Mr LeBlanc told reporters the two sides were "very close". Leaked details suggest the US may agree to reduce tariffs on Canadian steel and aluminium from 50% to 25%, and on Canadian automobiles from 25% to 15%. In return, Canada is reportedly considering restoring US alcohol sales and allowing American dairy producers greater market access.
Quebec Premier Christine Fréchette is analysing the deal's implications for Quebec farmers before deciding on restoring US alcohol sales. The mayor of an Ontario city, home to Canada's second-largest steel producer, expressed concern that a deal including 25% tariffs on the sector "wouldn't be something to celebrate".