Canada and the United States are still far from reaching an agreement on tariffs as the clock ticks towards the latest deadline set by President Donald Trump. Two sources familiar with the trade negotiations revealed that Canadian officials are not content with the most recent offer put forth by the U.S.
The American side presented a new proposal on Tuesday, aiming to reduce some sectoral tariffs, although not to the extent desired by the Canadian negotiators. Both countries have been engaged in discussions back and forth in the lead-up to August 19, the deadline when Trump plans to impose a 50% levy on numerous Canadian goods in addition to the existing sectoral tariffs.
Sources disclosed that the U.S. is pushing for a deal that would grant them preferential access to critical minerals in Canada, covering aspects of security and energy. Canada’s Trade Minister, Dominic LeBlanc, has held multiple meetings with U.S. Trade Representative Jamieson Greer over the past few weeks in an effort to present a potential trade deal to Trump.
It has been emphasized to the American counterparts that if the August 19 tariffs are implemented, there would be little willingness among Canadians to continue negotiations. Both sides have committed to daily meetings at various levels leading up to the looming deadline.
Although there were no responses from LeBlanc or Canada’s chief trade negotiator, Janice Charette, after their meeting with Greer on Tuesday, LeBlanc later stated that discussions are ongoing. Their focus extends beyond averting new tariffs to seeking relief from the existing U.S. tariffs on Canadian steel, aluminum, lumber, and automobiles.
Furthermore, Canada hopes that the ongoing trade discussions will lead to the renewal of the Canada-U.S.-Mexico Agreement (CUSMA) following the Trump administration’s decision not to extend the deal beyond 2036. The U.S. has raised concerns about trade issues, including Canada’s response to U.S. trade policies, such as removing 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 negotiations, emphasizing the importance of securing a beneficial deal for Canadians, including zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact, and exemption from Buy America rules in infrastructure projects. Reports suggest that Canada is prepared to meet some U.S. demands, like lifting booze bans, in exchange for tariff relief.