--- title: August 14, 2026 - Negotiation Blitz description: This week, the trade negotiation blitz between Canada and the U.S. heats up, and moderate inflation gives the Fed some breathing room. image: https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/og/OG_McMahon_1200x628_EN.jpg --- [![iA Groupe financier - Facebook](https://mcmahon.ia.ca/hubfs/Commun/logos/inverse/logo-i-a-horizontal-inverse-fr.png)](https://ia.ca/individuals) Toggle navigation [Macro playlist](https://mcmahon.ia.ca/en/september-11-2026-eye-for-an-eye) [About us](https://mcmahon.ia.ca/en/about-us) [Subscribe to the newsletter](https://mcmahon.ia.ca/en/newsletter-subscription) [fr](https://mcmahon.ia.ca/14-août-2026-blitz-de-négociations) # Macro Playlist The economic ideas driving markets. Every week, Sébastien Mc Mahon and his team deliver their carefully selected economic analyses and market outlooks. ## August 14, 2026 - Negotiation Blitz x Partager l'édition via Copy link LinkedIn X ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/animated_images.svg) ## Opening Track The week in review This week, the trade negotiation blitz between Canada and the U.S. heats up, and moderate inflation gives the Fed some breathing room. [Download slides](https://mcmahon.ia.ca/hubfs/Hebdo_20260814_EN.pdf) ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/vital_signs.svg) ## Top of the Charts Chart of the Week | Aluminum tariffs: a tax on American manufacturers As trade negotiations between Canada and the United States finally appear to be moving forward, this chart highlights what is likely one of the Trump administration’s most counterproductive trade policies: tariffs on aluminum. The chart compares the global aluminum price, as measured by the London Metal Exchange, with the price actually paid by U.S. importers. The difference between the two is the Midwest premium, an additional cost that American buyers must pay to secure metal delivered into their market. Since the tariffs were imposed, that premium has surged. While the global price of aluminum has increased only moderately, the cost paid by U.S. importers has soared. In fact, the full 50% tariff appears to have been absorbed by importers. At the same time, a relative shortage has emerged in the U.S. market, pushing prices even higher. Some Canadian exporters have redirected part of their shipments to other markets, including Europe. The problem for the United States is that there are very few local alternatives to Canadian metal. Replacing these volumes with domestic production appears unrealistic in the short, medium and even long term. Building or restarting an aluminum smelter requires massive investment, several years of development and, above all, access to abundant and low-cost electricity, a resource that is scarce in the United States. The result is that the biggest losers are American manufacturers that use aluminum to produce cans, automobiles, industrial parts or electrical equipment. Ultimately, consumers also end up paying the price. That is why Washington is likely to eventually back down as it seeks to reach a trade agreement with Canada. When a measure is meant to protect domestic industry but mainly acts as a tax on American manufacturers, it becomes increasingly difficult to justify keeping it in place. ![Midewest Premium EN_1](https://mcmahon.ia.ca/hs-fs/hubfs/Midewest%20Premium%20EN_1.png?width=800&height=600&name=Midewest%20Premium%20EN_1.png) ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/brand_awareness.svg) ## New Releases Read our latest publications ### Macro & Strategy Monthly - August 2026 « When the Levee Breaks » - When excess borrowing meets excess savings [Read here](https://files.ia.ca/-/media/files/gestion-mondiale-dactifs/content/2026/20260804/2026-08_monthly-macro-strategy_en.pdf) ## Soundtrack This week, Led Zeppelin joins the macro playlist ! ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/cards_star.svg) ## Featured on Air Quick access to our latest media appearances ### Energy stocks lift TSX into positive territory as oil prices rise The Canadian Press - August 10, 2026 [Consulter](https://www.bnnbloomberg.ca/markets/2026/08/10/sptsx-composite-index-up-in-late-morning-trading-us-markets-flat/) ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/Sebastien_McMahon.png) ## Sébastien Mc Mahon Chief Economist, iA Financial Group ![](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/Etienne_Bergeron.png) ## Étienne Bergeron Economist, iA Financial Group [About the team](https://mcmahon.ia.ca/en/about-us) ## Archives 2026 September - [September 11, 2026 - Eye for an eye](https://mcmahon.ia.ca/en/september-11-2026-eye-for-an-eye) - [September 4, 2026 - Risk management](https://mcmahon.ia.ca/en/september-4-2026-) August - [August 28, 2026 - Breaking point](https://mcmahon.ia.ca/en/august-28-2026-breaking-point) - [August 21, 2026 - The U.S. Treasury Under Pressure](https://mcmahon.ia.ca/en/august-21-2026-the-u.s.-treasury-under-pressure) - [August 14, 2026 - Negotiation Blitz](https://mcmahon.ia.ca/en/august-14-2026-negotiation-blitz) - [August 7, 2026 - Course adjustment](https://mcmahon.ia.ca/en/august-7-2026-course-adjustment) July - [July 31, 2026 - Loss of credibility](https://mcmahon.ia.ca/en/july-31-2026-loss-of-credibility) - [July 24, 2026 - Oil and Tariff](https://mcmahon.ia.ca/en/oil-and-tariffs) - [July 17, 2026 - Inflation surprise](https://mcmahon.ia.ca/en/july-17-2026-inflation-surprise) - [July 10th, 2026 - War and Peace](https://mcmahon.ia.ca/en/july-10th-2026-war-and-peace) - [July 3rd, 2026 - Trump's world](https://mcmahon.ia.ca/en/july-3rd-2026-) June - [June 26, 2026 - The fall of the loonie](https://mcmahon.ia.ca/en/june-26-2026-a-hike-in-july) - [19 June 2026 - A new era](https://mcmahon.ia.ca/en/19-june-2026-a-new-era) - [June 12 2026 - Stay the course](https://mcmahon.ia.ca/en/june-12-2026-stay-the-course) - [June 5, 2026 - Recalibration at the BoC](https://mcmahon.ia.ca/en/june-5-2026-recalibration-at-the-boc) May - [May 29, 2026 - Earnings and recessions](https://mcmahon.ia.ca/en/may-29-2026-earnings-and-recessions) - [May 22, 2026 - Downbeat Canada](https://mcmahon.ia.ca/en/may-22-2026-downbeat-canada) - [May 15, 2026 - Inflation and AI](https://mcmahon.ia.ca/en/week-ending-may-15-2026) ![mail](https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/icones/mail.svg) ## Stay informed Get the Macro Playlist delivered straight to your inbox every week and stay up to date on the trends shaping the markets. [Subscribe to the newsletter](https://mcmahon.ia.ca/en/newsletter-subscription) | [Follow us](https://mcmahon.ia.ca/en/about-us) | | --- | | [français](https://mcmahon.ia.ca/14-août-2026-blitz-de-négociations) | | --- | © 2026 Industrial Alliance Insurance and Financial Services Inc. – iA Financial Group. All rights reserved. ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Sébastien Mc Mahon", "url" : "https://mcmahon.ia.ca/en/author/sébastien-mc-mahon" }, "dateModified" : "2026-08-14T18:01:36.126Z", "datePublished" : "2026-08-14T18:01:27.000Z", "headline" : "August 14, 2026 - Negotiation Blitz", "image" : [ "https://mcmahon.ia.ca/hubfs/iagam/Blog%20Mc%20Mahon/images/og/OG_McMahon_1200x628_EN.jpg" ], "mainEntityOfPage" : { "@id" : "https://mcmahon.ia.ca/en/august-14-2026-negotiation-blitz", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://mcmahon.ia.ca/hubfs/iafg-bimi%20300x300.png.png" }, "name" : "Industrielle Alliance, Assurance et services financiers inc et ses filiales." } } ```