Canada and the U.S. averted an escalation in the trade tensions with an agreement to continue hammering out a deal that would prevent new American tariffs from taking effect Wednesday.
U.S. President Donald Trump announced late Tuesday night that he was extending the deadline three days citing a “deal” with Canada to address trade irritants. Prime Minister Mark Carney said the two sides were “moving towards an agreement.”
Details about what, exactly, such a deal would entail were sparse on Wednesday. Nonetheless the news of a potential agreement inspired cautious optimism on both sides of the border.
Here’s what people are saying in response:
“The chief trade negotiator and I met this morning with United States Trade Representative Jamieson Greer in Washington, D.C. We are working collaboratively towards a finalized agreement between our two countries.
“Efforts remain ongoing.”
Canada-U.S. Trade Minister Dominic LeBlanc
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“Congratulations Minister LeBlanc and Ambassador Greer for the significant progress in the Canada-United States trade negotiations.
“Canada entered these discussions with the best overall trade terms. We are now moving towards an agreement that reinforces that Canadian advantage, including by securing the best terms in each of Canada’s most important strategic sectors and providing greater certainty about our future trading relationship.”
Prime Minister Mark Carney
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“We had a very good conversation with the prime minister last night and we’ve come to a deal with Canada. As you know, the 50 per cent tariffs across the board were going on against Canada today, and they called yesterday and they gave us the points that we had to have. Very fair deal for both. The tariffs will be nonexistent for our farmers. Our farmers were paying tremendous tariffs into Canada and those tariffs are going to be totally eviscerated, down to zero.”
U.S. President Donald Trump
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“Conservatives were relieved that there is now a three-day delay on U.S. tariffs, and we’re looking forward to seeing the new and excellent deal that is being finalized, one we expect and we believe should include an end to tariffs on Canadians.
“While we disagree with the prime minister making so many concessions — with his giving the Americans 50 per cent of the tariffs on a bridge that Canadian taxpayers paid 100 per cent of the cost to build — we still stand by ready to help. We renew the offer we’ve been making for over a year that we are here to work with all parties, including the government, to fight for a win for Canada and we hope that over the next couple of days we’ll hear the good news that Mr. Carney will have kept his promise and that Canadians will get (an) even better deal than we had before.
“That’s what he promised: an even better deal than we had before. And to me, that should mean no tariffs on steel, aluminum, autos, lumber, and an exemption to Buy America.”
Conservative Leader Pierre Poilievre
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“For the benefit of all the workers affected — in every industry from steel and aluminum to autos, forestry and more — a good deal with the U.S. would be great news. But while we await the details, I’m urging the prime minister not to grant any concessions that would further undermine our economic independence.
“We are dealing with a president who trades in chaos and unpredictability: there is no deal that will bring an end to the threats and uncertainty. For this reason, protecting Canadian workers without granting further unilateral concessions is essential. And the Keystone XL pipeline is a concession that makes no sense whatsoever — for our economy, our sovereignty, or the climate. Earlier this year, the energy minister said repeatedly that he wants to help the U.S. achieve ‘energy dominance.’ This should obviously not be any part of a trade deal between our two countries.
“Canadians are not in the mood for more giveaways to the Trump administration. Even if that means walking away from the table to protect Canadian workers and industries.
“No deal is better than a bad deal.”
NDP Leader Avi Lewis
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“I welcome the significant progress made between the United States and Canada towards a deal, which is subject to finalization and signing. President Trump’s leadership and determination have driven these negotiations, and I look forward to the release of further specifics. This news demonstrates what can be accomplished through focused, constructive engagement, and a shared commitment to economic prosperity. We appreciate the efforts of our Canadian partners in making this possible.”
U.S. Ambassador to Canada Pete Hoekstra
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“While there’s still more work to be done, I’m encouraged by the recent progress we’ve seen in Canada-U.S. trade negotiations. As we await the details of this deal, I urge the federal government to continue negotiating to resolve the remaining tariff issues and restore free and fair trade with the United States, while also diversifying and strengthening the Canadian economy.
Alberta wants to build new pipelines west, east, north, and south, and we are always in discussions with industry to support these opportunities.”
Alberta Premier Danielle Smith
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“Let’s be clear: the tariff delay provides relief on both sides of the border. Businesses may not be closing up shop with this news, but an extension doesn’t bring the certainty that a signed interim deal would. We know that stability is in short supply and businesses will take any ounce they can get. This limbo state is not anyone’s preferred outcome — time is of the essence. We commend the negotiating team for their work and sense of urgency this week, and call on them to keep it up: ultimately, a resilient and integrated North American economy would be a stronger one for all.”
Candace Laing, president and CEO of the Canadian Chamber of Commerce
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“If the U.S. removes the 50 per cent tariff threat and approves Keystone, those are two big moves in the right direction and will provide needed short term relief to many small firms. But we need to see if progress was made on the existing sectoral tariffs (steel, aluminum, lumber, autos) to fully evaluate any overall interim deal.”
Dan Kelly, president and CEO of the Canadian Federation of Independent Business
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“The pause on another round of 50 per cent tariffs is welcome news for Canadian workers. The progress reported in negotiations is encouraging, but important work clearly remains to be done.
“Existing tariffs continue to hurt Canadian steel, aluminum, copper, forestry, automotive and other industries, and the broader Canada-U.S. trade negotiations remain critical for workers across the country.
“Our test for those negotiations remains straightforward: Canada must protect Canadian jobs and industrial capacity, secure meaningful reductions in U.S. tariffs and give workers and industries the certainty they need to invest and grow in Canada.
“Canada should keep negotiating from a position of strength. No deal is better than a bad deal that sacrifices Canadian workers, jobs or key industries.”
Marty Warren, United Steelworkers union national director
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“We appreciate President Trump’s continued commitment to restoring access for American spirits products across Canada following the discriminatory sales bans that have unfairly targeted U.S. distillers for more than a year and a half. These provincial bans have caused exports of American spirits to drop by more than 70 per cent, leaving American distillers caught in the middle of a broader trade dispute. As discussions continue over the next few days, we encourage leaders on both sides of the border to reach a negotiated solution that gets American spirits back on retail shelves in all Canadian provinces and returns the spirits sector to a zero-for-zero tariff framework.”
Chris Swonger, president and CEO of the Distilled Spirits Council of the U.S.
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This report by The Canadian Press was first published Aug. 19, 2026.
By The Canadian Press staff | Copyright 2026, The Canadian Press. All rights reserved.