Trump admin reportedly not expecting to reach Canada tariff deal

The Trump administration is reportedly less optimistic about reaching a trade agreement with Canada before new tariffs take effect on Wednesday, according to Bloomberg. Sources familiar with the talks suggest the likelihood of securing a deal is as low as flipping a coin. The United States and Canada face a midnight deadline, after which a 50% tariff on billions of dollars worth of Canadian goods would commence.

It remains uncertain whether these comments accurately depict the current state of negotiations or if they are attempts to gain an advantage. President Trump is set to speak with Prime Minister Carney again on Tuesday, following a phone call on Monday. Officials claim they have offered their best proposal to Canada. While a final discussion between Carney and Trump is seen as unlikely to result in an agreement, US officials do not rule out this possibility.

President Trump initiated his second term by imposing tariffs on both Canada and Mexico, and has expressed a desire to ultimately dissolve the North American trade agreement he negotiated during his first presidency. Carney has stated he will retain all options to respond to potential new US tariffs, including retaliatory measures.

Canadian negotiators have warned their American counterparts that enforcing the Section 338 tariffs would provoke a domestic response in Canada and effectively preclude Carney from negotiating concessions. The US might delay the duties to grant additional time for negotiations, the report added.