As the deadline for U.S. President Donald Trump’s latest tariff approaches, Canada and the U.S. have not reached a point of agreement on tariffs, with Canadian officials expressing dissatisfaction with the most recent U.S. proposal, according to informed sources. The American side presented a new offer on Tuesday, aiming to reduce certain sectoral tariffs, but not to the extent desired by Canada. Negotiations have been ongoing in the lead-up to the Aug. 19 deadline, when Trump plans to impose a 50 percent levy on numerous Canadian goods in addition to existing sectoral tariffs.
The U.S. is pushing for a deal that would grant them preferential access to crucial Canadian minerals and cover areas like security and energy, as per sources familiar with the discussions. Canada’s Trade Minister, Dominic LeBlanc, has been engaging with U.S. Trade Representative Jamieson Greer in Washington over the past few weeks, with the objective of presenting Trump with a potential trade agreement soon.
Sources revealed that Canadian officials have strongly conveyed to the Americans that if the Aug. 19 tariffs are imposed, there will be little support among Canadians to continue negotiations. Both sides have committed to daily meetings at various levels leading up to the deadline.
Following their meeting with Greer, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, responded to questions from reporters. LeBlanc later mentioned that discussions are ongoing and that they will persist in negotiations. LeBlanc and Charette remain in Washington as of Wednesday night.
Apart from discouraging new tariffs, LeBlanc and Charette are seeking relief from the existing U.S. tariffs on Canadian steel, aluminum, lumber, and automobiles. Canada is also hopeful that ongoing trade discussions will result in the renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined to extend the deal beyond 2036 last month.
When announcing the upcoming tariffs on Aug. 19, the U.S. cited various trade issues, including Canada’s response to U.S. trade policies, such as removing U.S. alcohol from provincial stores, and alleged discrimination against U.S. vehicles and dairy products.
Conservative Leader Pierre Poilievre urged action in trade talks, emphasizing the need for a favorable deal for Canadians, including zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto agreement, and exemption from Buy America regulations for infrastructure projects at all government levels. Industry insiders have indicated that Canada is considering meeting U.S. demands, such as lifting the alcohol bans, in exchange for tariff relief.