Concerns among Canadian negotiators are growing over the potential imposition of new U.S. tariffs scheduled to become operative on Wednesday. Negotiations with Washington are proving challenging as Canada seeks to address existing sectoral tariffs while also pushing provinces to ease restrictions on American alcohol, according to sources familiar with the matter.
Multiple sources, both in Canada and the U.S., who have been directly briefed on the ongoing negotiations, spoke on condition of anonymity to provide insights into the talks.
The intensity of negotiations has increased, with Canada-U.S. Trade Minister Dominic LeBlanc holding another round of discussions with U.S. Trade Representative Jamieson Greer on Sunday. This marked their third meeting in less than a week, conducted virtually and lasting approximately an hour.
In recent weeks, Ottawa has been pursuing a “comprehensive agreement” with Washington. The primary objective is to persuade the Trump administration to revoke the impending 50 per cent tariffs on nearly $28 billion worth of Canadian goods, constituting about five per cent of Canada’s exports to the U.S.
Central to this sought-after deal is an arrangement for the U.S. to reduce the current sectoral tariffs affecting industries such as steel, aluminum, auto, and lumber. Presently, steel and aluminum face 50 per cent tariffs, while automobiles are subject to 25 per cent tariffs.
During a speech in Des Moines, Iowa, United States Trade Representative Jamieson Greer highlighted numerous trade issues with Canada, emphasizing that any retaliation would not be tolerated by the U.S.
Sources indicate that a comprehensive, dual-pronged agreement is crucial to garner support from provinces, including a commitment to reintroduce American alcohol into the Canadian market. The Trump administration has made the restoration of U.S. alcohol sales in Canada a non-negotiable aspect of the talks.
However, the U.S. has yet to agree to substantial reductions in existing sectoral tariffs, resulting in significant disagreements between the two nations, as reported by CBC News on Friday.
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