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Canadian Minister Dominic LeBlanc told reporters on Thursday that Ottawa and Washington are very close to finalizing a trade agreement, according to a Wall Street Journal report. The minister said more work remains even as both sides have made significant progress during talks in Washington. LeBlanc added that officials planned to continue negotiations into the evening to bridge remaining gaps before any new tariffs take effect.[[1]](https://www.wsj.com/world/americas/canada-trade-official-says-tariff-deal-with-u-s-very-close-7c0d6821)
The tentative pact would halve U.S. tariffs on Canadian steel and aluminum while lowering duties on Canadian automobiles, the Journal reported. This development follows President Donald Trump’s decision to pause 50 percent tariffs on Canadian imports for three days after a conversation with Canadian Prime Minister Mark Carney. A Reuters dispatch noted the agreement could reduce months of accumulated tariffs and counter-duties between the two nations.[[2]](https://www.marketscreener.com/news/latest/Canada-says-trade-deal-with-US-is-very-close-more-work-needed-11508349/)
LeBlanc stated, “We’re very close. We continue to make progress and we’re going to stay here and do the work that’s necessary.” The comment came as Canada’s chief trade negotiator Janice Charette remained in meetings with U.S. counterparts late into the evening, a CBC News update indicated. Canadian and U.S. officials had been working to finalize details that would avert new duties on nearly 30 billion dollars in Canadian goods.[[3]](https://www.cbc.ca/news/world/livestory/canada-u-s-trade-deal-deadline-liquor-booze-steel-aluminum-9.7310605)
A Congressional Research Service assessment updated in March 2026 describes the U.S.-Canada trade relationship as one of the largest bilateral exchanges in the world, encompassing highly integrated energy and automotive markets. The report places U.S. duties in 2025 on about 13 percent of imports from Canada, a portion valued at roughly 50.5 billion dollars. The two countries currently operate under the 2020 United States-Mexico-Canada Agreement, which faces a scheduled joint review in July 2026.[[4]](https://www.congress.gov/crs-product/IF12595)
Talks have unfolded against a backdrop of heightened tensions that began with U.S. tariff actions in 2025 and threats of further measures, including potential 100 percent tariffs linked to other trade partners. An Al Jazeera report detailed Trump’s recent announcement of a very fair trade agreement that would eliminate tariffs on U.S. farm and business exports to Canada, subject to final documentation. Negotiators from both sides have focused on steel, aluminum, automobiles and other key sectors during the latest round of discussions.[[5]](https://www.aljazeera.com/economy/2026/8/19/us-and-canada-reach-very-fair-trade-agreement-trump-says)
The negotiations also occur as the United States-Mexico-Canada Agreement heads toward its mandated review, which could lead to significant revisions, the Congressional Research Service document noted. Canadian officials have emphasized the need for swift resolution to maintain stability in cross-border commerce that supports millions of jobs on both sides of the border. LeBlanc left the U.S. Trade Representative’s office after briefing reporters but signaled that technical teams would persist with drafting work overnight.
