Canada is racing to negotiate a trade deal with the Trump administration to avoid a fresh wave of U.S. tariffs on its exports. These tariffs, which include a new round of 50% duties, are set to come into effect on Wednesday, with economic pain potentially starting at midnight Tuesday.
Canada aims to dodge the crippling tariff threat while seeking additional relief on existing tariffs in key sectors. Businesses have warned that these measures could cause job losses in already struggling industries and complicate broader negotiations over the future of North America's free trade agreement.
Tensions between Washington and Ottawa are already high, stoked by trade disputes and President Donald Trump's inflammatory comments about making Canada the 51st U.S. state.