US, Canada resume talks to finalise trade deal as details emerge

United States and Canadian negotiators reconvened trade discussions on Thursday, aiming to finalize a pact that would avert new tariffs threatened by President Donald Trump. The meeting took place in Washington, following Prime Minister Mark Carney's briefing of Canada's regional leaders on the proposed deal's key points. Dominic LeBlanc, Canada's minister for bilateral trade with the United States, was in Washington to meet with US Trade Representative Jamie Scott Greer.

Carney expressed satisfaction about the progress made during the negotiations, stating, "I am always looking forward to be back at work." On the previous day, both nations reported nearing a final agreement, which could help ease tensions after months of hostility sparked by Trump's punitive tariffs. The United States had previously imposed a 50% tariff on Canadian imports, set to take effect on Wednesday, but Trump had delayed the implementation for 72 hours, asserting a deal was close to being reached.

Although the specifics of the potential agreement remain undisclosed, Carney briefed Canada's provincial and territorial leaders about the negotiations, highlighting specific requests from the US, such as restocking beverages. Several Canadian provinces had removed these beverages in retaliation for the tariffs on their auto, steel, aluminum, and lumber industries. Additionally, Carney encouraged provinces to remove any discriminatory clauses in procurement policies that explicitly exclude US suppliers.

Nova Scotia Premier Tim Houston emphasized the emotional toll the trade disputes have taken on Canadians, stating, "It has been emotionally draining and it has had an emotional impact that will last a long time." Carney asked provinces to ensure they remove any language in procurement policies that specifically exclude the US. While Houston did not disclose any proposed US tariff reductions, he affirmed that the agreement appeared to be "the best possible outcome we can hope for in dealing with this administration."

The deal would also preserve the core elements of Canada's supply management policy, which controls dairy and poultry supply, imposing substantial penalties on US suppliers above specific rates. Beyond these provisions, the US may have additional demands on Canada's federal government, including commitments on defense procurement and critical mineral supply.