US-Canada trade talks inch toward compromise amid tariff threats

Analysts say the U.S. and Canada could avoid a full-blown trade war and seek a middle ground despite tariff rhetoric, since punitive tariffs wouldn’t take effect until after the midterms and there’s time for stopgap talks. Canada rejected a deal seen as too one-sided, but experts warn tariffs remain costly and that maintaining roughly $880 billion in bilateral trade hinges on cooler heads and trusted diplomacy—possibly aided by lessons from past progress on USMCA.