"Despite the decline, the reported growth in 15 out of 18 manufacturing industries is a testament to the expanded economic activity in the manufacturing sector," said Anthony Sasso of TD Bank.
The new deal will be called the U.S.-Mexico-Canada Agreement, or USMCA.
While the monthly data on durable goods are typically volatile, and August’s dip follows a strong July, analysts are watching for signs that a widening trade war is spurring companies to slow investment.
Canada's Prime Minister Justin Trudeau downplayed the urgency of the latest deadline in negotiations.
CEO Jim Hackett urged the Trump administration to resolve trade disputes quickly, or they could do "more damage" to his company.
The Chinese government has yet to detail how the general tariff cut will apply to U.S. goods affected by retaliatory tariffs.