Canada and the United States are still far from reaching a tariff deal as the deadline set by U.S. President Donald Trump approaches. Sources familiar with the trade discussions revealed that Canadian officials are dissatisfied with the latest offer presented by the U.S.
The American side proposed a new plan on Tuesday, aiming to reduce some sectoral tariffs, but not to the extent desired by Canada. Negotiations have been ongoing in the past weeks to secure a deal before August 19 when Trump plans to impose a 50% levy on numerous Canadian goods, in addition to existing sectoral tariffs.
Reports suggest that the U.S. is pushing for a deal that includes preferential access to Canadian critical minerals, along with coverage on security and energy aspects. Canadian Trade Minister Dominic LeBlanc has been actively engaging with U.S. Trade Representative Jamieson Greer in Washington to outline a potential trade agreement before the looming deadline.
It has been emphasized by Canadian representatives that if the August 19 tariffs are imposed, there will be no willingness among Canadians to continue the negotiations. Both sides have committed to daily meetings at various levels leading up to the deadline.
Despite no official statements from LeBlanc and Canada’s chief trade negotiator Janice Charette after their meetings with Greer, discussions are said to be ongoing. They are also seeking relief from the U.S. tariffs imposed on Canadian steel, aluminum, lumber, and automobiles.
In addition to avoiding new tariffs, Canada is also aiming for a renewal of the Canada-U.S.-Mexico Agreement (CUSMA) following the Trump administration’s decision not to extend the deal beyond 2036 last month. The ongoing trade talks are crucial for maintaining smooth trade relations between the two countries.
Conservative Leader Pierre Poilievre has urged for a robust stance in the negotiations, emphasizing the need for a favorable deal that includes zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto agreement, and exemption from Buy America rules for infrastructure projects.
Sources have indicated that Canada is willing to concede to some U.S. demands, such as ending alcohol bans, in exchange for relief from tariffs. The negotiations remain critical as both countries strive to find common ground on trade issues before the tariff deadline.