Canada 'should fight' as US trade deadline looms, Manitoba premier says

An important development from the financial markets: Canada 'should fight' as US trade deadline looms, Manitoba premier saysImage source, ReutersImage caption, Manitoba premier Wab Kinew publicly criticised the trade deal being discussed by the US and Canada, and called Donald Trump a "bad person"ByNadine YousifSenior Canada reporterPublished21 August 2026One of Canada's provincial leaders has criticised a prospective trade deal with the US and pushed his country to hold out for favourable terms, showing Prime Minister Mark Carney faces a tough battle in getting buy-in on the agreement hours away from a US-set deadline. Negotiators have until Friday night to finalise the deal or risk a fresh wave of additional US tariffs on a wide range of Canadian goods. Still, Manitoba Premier Wab Kinew said Canada "should fight" and not rush to make concessions.

Carney needs Kinew and other premiers to restore sales of US alcohol on liquor store shelves, so that the US will reportedly agree to reduce some of its tariffs on Canadian metals and autos. Trump pauses new tariffs on Canada for three days, saying deal close Published2 days agoCanada's 'powerful' dairy sector is in Trump's trade crosshairs Published23 JulyHours before the deadline, President Donald Trump did not say whether a definitive deal had been agreed, but that it was "moving along". "We should be able to have a deal with Canada.

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We're also starting on a new deal with Mexico. A much better deal for the United States. I only make good deals," he told reporters on Friday.

Canada-US Trade Minister Dominic LeBlanc was set to meet his counterpart, US Trade Representative Jamieson Greer, again on Friday morning. After a meeting with Greer that lasted more than three hours on Thursday, LeBlanc told reporters that the two sides were "very close". Details leaked to several media outlets suggest the US will agree to reduce tariffs on Canadian steel and aluminium from 50% to 25%, and tariffs on Canadian automobiles from 25% to 15%.

In addition to restoring the sale of American booze, Canada is said to be considering allowing American dairy producers greater access to its market and removing its retaliatory tariffs on the US. As negotiators have worked around the clock to hammer out a deal, some Canadians are expressing concern about what is - and what isn't - on the table. Trump has hailed the possible deal as good for American farmers and manufacturers, while Carney has said the two sides are closing in on an agreement addressing "Canada's most important strategic sectors".

Kinew said on Thursday that he believed Trump was a "bad person", and questioned why Canada would give up some of its leverage by restoring US alcohol sales. "Everybody knows the American president by now, he's erratic, he's irresponsible, and he's not to be trusted," Kinew said. "And this is the person that we were supposed to make a deal with, and we're going to make additional concessions for it.

Economists are analysing what the news means for the markets.