As the deadline for President Donald Trump’s latest tariff approaches, Canada and the U.S. have not yet come to an agreement on tariffs. Two sources familiar with the trade discussions have revealed that Canadian officials are dissatisfied with the recent offer from the U.S. The American proposal presented on Tuesday aimed to reduce certain sectoral tariffs, but not to the extent desired by the Canadian side.
Negotiators from both countries have been engaged in discussions in the lead-up to August 19, the date when Trump has threatened to impose a 50% tariff on a wide range of Canadian goods in addition to the existing sectoral tariffs. The U.S. is pushing for a deal that would provide preferential access to critical minerals in Canada, covering aspects of security and energy.
Dominic LeBlanc, the Trade Minister of Canada, has held multiple meetings in Washington with U.S. Trade Representative Jamieson Greer in an effort to present a potential trade agreement to Trump. The Canadian side has strongly conveyed to the Americans that there would be little support from Canadians to continue negotiations if the August 19 tariffs are implemented. Both parties have committed to daily meetings leading up to the deadline.
LeBlanc and Janice Charette, Canada’s chief trade negotiator, are also seeking relief from the tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. Additionally, Canada hopes that ongoing trade discussions will lead to the renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined to extend the deal beyond 2036.
In response to the upcoming tariffs, the U.S. has raised concerns about various trade issues, including Canada’s response to U.S. trade policies, such as the removal of U.S. alcohol from provincial stores, and alleged discriminatory practices against U.S. motor vehicles and dairy products.
Conservative Leader Pierre Poilievre has urged for a strong stance in the negotiations, emphasizing the importance of securing a favorable deal for Canada. Industry sources suggest that Canada is preparing to address some U.S. demands, such as lifting the alcohol bans, in exchange for tariff relief.
The discussions between the two countries remain ongoing, with both sides working towards a mutually beneficial trade agreement.
