Trump says US and Canada have a trade deal, but key terms remain unclear

WASHINGTON (AP) — Canada and the United States moved closer Wednesday to finalizing a trade agreement that would avert threatened 50% U.S. tariffs, with a senior Canadian official calling the emerging terms “a very good deal for Canada” while cautioning that negotiations were not complete.

President Donald Trump said the agreement was “very fair” to both sides and predicted U.S. farmers and manufacturers would benefit. The tariffs on about $20 billion worth of Canadian imports have been postponed until 12:01 a.m. Saturday.

The senior Canadian official said the emerging agreement would provide greater certainty, protect Canada’s dairy sector and jobs threatened by the new tariffs, and preserve what Ottawa considers favorable trade terms with the United States.

The official spoke on condition of anonymity because they were not authorized to discuss the negotiations publicly before an agreement is finalized.

Dominic LeBlanc, the minister responsible for Canada-U.S. trade, returned to Ottawa on Wednesday to meet Canadian Prime Minister Mark Carney, who was also set to chair a Cabinet meeting and a virtual meeting with provincial and territorial leaders.

Here's what to know:

Last month, Trump invoked a never-before-used legal authority, dating back to the Great Depression, to announce that the United States would slap 50% tariffs on $20 billion, or about 5%, of Canadian exports to the United States, ranging from hockey sticks to tongue depressors.

Trump claimed that Canada discriminates against American exports of autos, alcohol and cheese. The U.S. president is also furious that Canada and China were the only countries that punched back with retaliatory tariffs of their own when he slapped levies on their products.

The United States and Canada have sparred for decades over trade, poking each other over sore spots like Canadian softwood lumber imports and U.S. access to Canada’s protected dairy market.

While details of the agreement emerging Wednesday remain vague, Trump claimed anada had agreed to end tariffs on U.S. agricultural products. “The tariffs will be non-existent for our farmers. Our farmers were paying tremendous tariffs into Canada, and those tariffs are going to be totally eviscerated. Down to zero,” he said.

Canada currently allows a set amount of dairy imports at low tariffs. Once imports exceed that limit, much higher tariffs apply. The U.S. says Canada’s “supply management″ system makes it harder for American dairy producers to get full access to the Canadian market.

LeBlanc, talking to reporters in Washington, said Canada’s “agriculture sector will be well protected and we have maintained our tough line.’’

The senior Canadian official was even more explicit, saying supply management was “not on the table” and Canada’s dairy system would remain protected.

That leaves another key question unresolved: how Canada can preserve supply management while giving U.S. farmers the additional access Trump says they will get.

Canada has not publicly detailed what tariff relief Washington has offered.

But the senior Canadian official said the emerging agreement would protect a significant number of jobs and preserve Canada’s favorable access to the U.S. market.

The official also said the agreement would allow Canada to focus more on its domestic economic agenda, including infrastructure projects, attracting foreign investment and diversifying exports beyond the United States.

In the Truth Social post announcing the three-day tariff pause, Trump declared that the long-canceled Keystone XL pipeline “may be awoken from the grave.” He posted an illustration of himself wrangling with a pipeline. He did not say whether reviving Keystone XL was part of the agreement.

The White House did not return a request for more details on the Keystone element. But earlier this year, Trump granted a key approval for a major new Canada-to-U.S. pipeline nicknamed “Keystone Light." It would carry up to 550,000 barrels (87,400 cubic meters) of oil a day from Canada through Montana and Wyoming, where it would link with another pipeline.

Keystone XL was designed to carry up to 830,000 barrels of crude a day from Canada’s oil sands to Nebraska and onward to U.S. Gulf Coast refineries. The project became a major political and environmental fight: President Barack Obama rejected it in 2015, Trump revived it in his first term and President Joe Biden canceled its permit in 2021. The Canadian company behind it later abandoned the project.

Carney had already raised reviving Keystone XL with Trump at the White House in October 2025, and Trump was receptive, according to a Canadian government official familiar with the discussion. A revival would align with a longstanding Canadian goal rather than amount to a new U.S. concession.

Carney did not mention the pipeline in his latest statement or detail what Canada had agreed to in the broader trade talks.

Eight of Canada’s 10 provinces restrict or ban U.S. alcohol — measures imposed in retaliation for Trump’s previous tariffs on a number of Canadian goods last year and amid anger over his repeated talk of making Canada the 51st U.S. state. The Distilled Spirits Council says U.S. spirits exports to Canada have fallen more than 70%.

Ontario, Canada’s most populous province, is especially important. Its government-run LCBO, one of the world’s largest alcohol purchasers, sold nearly $1 billion Canadian dollars ($723 million) in U.S. products annually before pulling them from shelves.

The White House says the emerging deal includes a Canadian commitment to address the restrictions. But Carney cannot order provinces to restore sales. And provincial leaders could resist if the broader deal falls short of their priorities. For instance, Quebec is focused on dairy supply management, Ontario on protecting its auto industry and British Columbia on softwood lumber.

The backlash extends beyond liquor stores, with Canadian travel to the United States falling sharply. Even if U.S. alcohol returns, sales could take time to recover.

The U.S. is renegotiating a North American trade pact — the US-Mexico-Canada Agreement — that Trump strong-armed America’s neighbors into accepting in his first term. The U.S. has begun formal USMCA negotiations with Mexico but not with Canada.

The senior Canadian official said resolving the immediate tariff dispute would provide a path toward broader USMCA negotiations.

If the threat of 50% tariffs is cleared, it "should help pave the way for formal U.S.-Canada negotiations,'' said Wendy Cutler, a former U.S. trade negotiator who is now senior vice president the Asia Society Policy Institute.

Both countries had incentives to head off an escalation in trade tensions.

Nearly 72% of Canada’s goods exports last year went to the United States. And the Trump administration might be wary of imposing a hefty new tariff — paid by U.S. importers who try to pass along the cost to consumers via higher prices — ahead of November’s midterm elections. American voters are already frustrated with the high cost of living.

Gillies reported from Toronto.

Canada-U.S. Trade Minister Dominic LeBlanc, left, and United States Trade Representative Jamieson Greer, speak to reporters in Washington, D.C., on Wednesday, Aug. 19, 2026, the day after the Trump administration temporarily delayed tariffs on Canada. (Kelly Geraldine Malone/The Canadian Press via AP)

Canada-U.S. Trade Minister Dominic LeBlanc, left, and United States Trade Representative Jamieson Greer, speak to reporters in Washington, D.C., on Wednesday, Aug. 19, 2026, the day after the Trump administration temporarily delayed tariffs on Canada. (Kelly Geraldine Malone/The Canadian Press via AP)

Canada-U.S. Trade Minister Dominic LeBlanc, centre left, and United States Trade Representative Jamieson Greer, leave a meeting in Washington, D.C., on Wednesday, Aug. 19, 2026, the day after the Trump administration temporarily delayed tariffs on Canada. (Kelly Geraldine Malone/The Canadian Press via AP)

Canada-U.S. Trade Minister Dominic LeBlanc, left, and United States Trade Representative Jamieson Greer speak to reporters in Washington, D.C., on Wednesday, Aug. 19, 2026, the day after the Trump administration temporarily delayed tariffs on Canada. (Kelly Geraldine Malone/The Canadian Press via AP)

RENTON, Wash. (AP) — The Seattle Seahawks signed cornerback Trevon Diggs on Wednesday.

A person with knowledge of the deal told The Associated Press the contract is expected to be a one-year deal. The person spoke to the AP on condition of anonymity because the terms hadn't been announced.

Diggs is a two-time Pro Bowler coming off a season in which he was waived by the Dallas Cowboys and released by the Green Bay Packers. In joining the Super Bowl champions, the 27-year-old hopes to more closely resemble the player who had an NFL-leading 11 interceptions and earned All-Pro honors in 2021.

“I’m looking to show that I’m still the best,” Diggs said. “I’m looking to show that I just want to win and be there for my teammates and be a great teammate and be a great player.”

The Seahawks brought in Diggs less than a week after the team entered an agreement with cornerback Terrion Arnold, whose status for the 2026 season is uncertain.

Arnold is facing eight felony charges stemming from allegations he orchestrated the abduction and beating of three men in February. He became a free agent in June, when the Detroit Lions released him a few days after the kidnapping, armed robbery and conspiracy charges were levied.

Arnold will be placed on the commissioner's exempt list when he signs. He will not be permitted to play or practice while the league investigates his case but can be paid and attend team meetings.

Wide receiver Julian Hicks was waived to make room for Diggs on the 90-man roster.

Diggs should add depth to a secondary that lost cornerback Riq Woolen to free agency and has been without second-year safety Nick Emannwori, who had offseason ankle surgery, during training camp.

In 2025, Diggs played six games for Dallas before sustaining a concussion in an accident at home on Oct. 16. He didn’t explain the cause of the injury to reporters until two months later, when he said he got hit in the head when he was mounting a pole while trying to install a TV.

“It was tough, but just keeping good people around you (helps),” Diggs said of his recovery. “My family is a great support system for me, keeping my mental straight. Just keep going.”

Even after Diggs cleared the concussion protocol, he remained off the field with what the Cowboys described as lingering knee issues. Diggs then returned for two games before getting waived in late December.

He joined the Packers just before their final regular-season game. He played nearly half of Green Bay’s defensive snaps in his Packers debut as the team rested its starters in a 16-3 loss at Minnesota. But he was on the field for only one snap when the Packers lost 31-27 at Chicago in an NFC wild-card playoff game.

Diggs made the Pro Bowl in 2021 and 2022 but his performance has declined since, in part because of two major knee surgeries. He declared himself healthy on Wednesday.

“It’s my first offseason that I’ve been able to just not rehab and actually do offseason training,” Diggs said. “So, a lot of trainers put the work in, helped me put the work in to get to where I’m at today.”

Diggs has played in 71 NFL games, including playoffs, since the Cowboys took him with the 51st pick in the 2020 draft out of Alabama.

The Seahawks fielded arguably the NFL’s best defense last season. No team allowed fewer points per game (17.2), and Seattle finished in the top seven in the league in sacks and interceptions.

Diggs has been teammates previously with Seattle cornerback Josh Jobe and defensive end DeMarcus Lawrence.

“It was just finding somewhere that felt like home,” Diggs said. “Finding somewhere that I’ll have the opportunity to compete, have the opportunity to play. It felt right.”

See AP’s full NFL coverage here

FILE - Dallas Cowboys cornerback Trevon Diggs (7) walks along the sideline during the first half of an NFL football game against the Los Angeles Chargers, Dec. 21, 2025, in Arlington, Texas. (AP Photo/Tony Gutierrez, File)