According to CoinMeta, and as reported by Polit, sources familiar with the matter say that the United States and Canada are reaching a temporary agreement to avoid tariffs of 50% on certain Canadian goods, and the relevant plan has been submitted to Trump for approval. Trump will decide whether to implement the tariffs, which were scheduled to take effect at midnight on August 19th local time. In recent days, both sides have engaged in intensive negotiations. The U.S. is demanding that Canada revoke its countermeasures against American cars and alcoholic beverages and adjust its dairy supply management policies, while Canada hopes that the U.S. will reduce tariffs on goods such as cars. Negotiators hope to use this “small agreement” to facilitate broader negotiations under the USMCA (USMCA). Tariffs on cars remain a core point of disagreement. If the tariffs are implemented, although they will only affect a portion of trade, they could impede nearly $1 trillion in trade in goods and services between the U.S. and Canada. Canadian Prime Minister Justin Trudeau is also under domestic pressure, as any concessions to the U.S. could come at a political cost. If the Trump administration presses ahead with the tariffs, it could also exacerbate economic pressures before the mid-term elections, particularly affecting key states such as Maine and Michigan.