Canada’s Trade Minister Dominic LeBlanc and the U.S. Trade Representative are working together to present a potential trade agreement to President Donald Trump before his upcoming tariff deadline. Sources familiar with the matter revealed that the joint proposal is aimed to be delivered to Trump at least a day before the deadline to allow him time to make a final decision before new tariffs on Canadian imports are set to take effect on August 19.
LeBlanc recently met with the U.S. Trade Representative in Washington for the third time in three weeks. Following the meeting, neither LeBlanc nor Canada’s chief trade negotiator responded to questions from reporters. LeBlanc later shared on social media that discussions are ongoing, and they will continue negotiations at the table.
In addition to preventing new tariffs, LeBlanc and his team are seeking relief from sectoral tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. They are also hoping for an extension of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration chose not to renew the deal in July.
The U.S. administration cited various trade issues, including Canadian actions against U.S. trade policies such as the removal of U.S. alcohol from provincial stores and alleged discrimination against U.S. vehicles and dairy products. The new tariffs will affect about five percent of Canadian exports to the U.S., covering a range of goods from alcohol to sports equipment.
Conservative politicians in Canada are urging the government to take a strong stance in the negotiations with the U.S. Conservative MP Michelle Rempel Garner emphasized the importance of securing a favorable trade agreement with the Trump administration. Conservative Leader Pierre Poilievre also called on Canadian officials to prioritize zero tariffs on softwood lumber, the removal of sectoral tariffs, a tariff-free auto pact, and exemptions to Buy America rules in infrastructure projects.
The efforts to reach a trade agreement come amid escalating tensions between Canada and the U.S., with both sides working to find common ground and avoid further economic disruptions.
