The U.S. and Canada are scrambling to avoid new tariffs and seal a trade deal. Here’s what could be in it.

U.S. and Canadian negotiators convened for further discussions on Friday, continuing a push to reach a new trade agreement and avert fresh tariffs. Officials have not released a comprehensive framework, but details about the potential contents of the deal have emerged in recent days. The active dialogue suggests both sides are attempting to narrow differences on key sticking points.

For market participants, the significance lies in predictability. A completed agreement would reduce the risk of new import taxes and help stabilize cross-border trade flows, which support supply chains across manufacturing, energy, and agriculture. Conversely, a breakdown could reintroduce uncertainty and raise costs for businesses on both sides of the border.

What remains to be watched is whether the talks convert into a formal text or if disagreements persist. Market reaction will likely be tied to concrete developments rather than speculation, as tariff policy has become a central variable in trade-sensitive sectors.