Canada’s Trade Minister Dominic LeBlanc and the U.S. Trade Representative are working towards proposing a potential trade deal to President Donald Trump by Monday, according to sources familiar with the matter. The aim is to present the joint proposal to Trump ahead of his impending tariff deadline to provide ample time for a final decision before new 50 percent levies on hundreds of Canadian imports go into 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, LeBlanc and Canada’s chief trade negotiator did not address reporters’ questions, indicating that discussions are ongoing. The objective is to discourage the imposition of new tariffs by the U.S. and seek relief on sectoral tariffs imposed on Canadian steel, aluminum, lumber, and autos.
The ongoing trade negotiations are also aimed at extending the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined to renew the deal in July. The U.S. has cited several trade issues, including Canada’s response to U.S. trade policies, as reasons for the tariff threats. The proposed tariffs would impact about five percent of Canadian exports to the U.S., covering a range of goods from alcohol to sports equipment.
Conservative lawmakers are urging the Canadian government to prioritize securing a favorable trade agreement with the U.S. Conservative MP Michelle Rempel Garner emphasized the need for Canada to negotiate from a position of strength and called for tangible results in trade talks with the Trump administration. Conservative Leader Pierre Poilievre has also pressed for a comprehensive agreement that includes zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact, and exemptions to Buy America rules on infrastructure projects at all government levels.