Canada and the U.S. are negotiating critical minerals and defence as part of trade talks racing an Aug. 19 tariff deadline
Canada and the United States have brought critical minerals and defence into their ongoing trade negotiations, with both sides trying to finalize a first-phase deal before a threatened round of U.S. tariffs takes effect Aug. 19.
According to three Canadian sources and one U.S. source familiar with the talks, the goal is a "phase one" agreement in which Canada would receive reductions in President Donald Trump's tariffs in exchange for meeting a list of U.S. trade demands (The Globe and Mail). The Globe and Mail's Adrian Morrow first reported the critical minerals and defence dimensions of the negotiations.
Dominic LeBlanc, the federal minister responsible for Canada-U.S. relations, and Janice Charette, Canada's chief trade negotiator to the United States, are handling the Canadian side of the file. Ottawa wants to wrap up the agreement before the Aug. 19 tariff deadline.
Critical minerals and defence have entered the negotiating conversation, but detailed work on both files is expected to come later, after the phase-one deal. Still, what Canada signals now about its willingness to co-operate on those two areas could shape what the first-phase agreement looks like.
On the U.S. demand list, Washington is seeking a right of first refusal on Canadian critical minerals, according to The Globe and Mail's reporting (The Globe and Mail). A right of first refusal means the U.S. would get the first opportunity to buy those minerals before Canada could sell them to other countries. The U.S. is also demanding that Canada complete its purchase of American F-35 fighter jets.
The critical minerals file carries real economic weight. Natural Resources Canada says critical minerals contribute roughly $40 billion to Canada's economy, directly and indirectly (Natural Resources Canada. The federal government has called critical minerals "the building blocks for the green and digital economy" in its Canadian Critical Minerals Strategy (Government of Canada.
The U.S. interest in Canadian minerals fits a broader pattern. Global Affairs Canada briefing documents say the U.S. is pursuing an aggressive "America First" critical minerals strategy to lock down supply chains and secure resources from around the world (Global Affairs Canada. The U.S. State Department, in a February 2026 statement for a Critical Minerals Ministerial, said critical minerals and rare earths are essential for advanced technologies and will grow more important as artificial intelligence, robotics and other sectors expand (U.S. State Department. Washington has already signed a Critical Minerals Framework with Australia, referenced in a Joint Fact Sheet following AUSMIN 2025 consultations in December 2025 (U.S. State Department.
On the F-35 demand, Canada's Department of National Defence has stated there is no "kill switch" — meaning the United States cannot externally shut down or interfere with the aircraft's electronic systems (Department of National Defence. That statement, made in a submission to the House Standing Committee on Public Accounts in July 2026, addresses a concern that has hung over the F-35 procurement debate in Canada.
The way these talks are structured is worth noting. Critical minerals and defence are part of the conversation, but the substantive engagement on both is being deferred to a later phase. What Canada signals now about its willingness to co-operate on those two files could influence what the phase-one deal looks like, even if the detailed terms are left for later.
The Aug. 19 tariff deadline gives the negotiations a hard edge. Ottawa's goal is to land an agreement before that date, securing tariff reductions in exchange for concessions that include, at minimum, movement on the U.S. critical minerals and F-35 demands. Whether both sides can close the gap in the coming days will determine whether the phase-one deal lands on time or slides past the deadline.
