Trump tariff threat pushes US, Canada towards trade deal as talks enter final stretch
The US and Canada are racing to finalise a trade deal before President Donald Trump's threatened 50% tariff on about $20 billion of Canadian goods takes effect Saturday. Negotiators say talks are very close, but key issues remain.
The United States and Canada are set to resume trade negotiations on Friday, as they strive to secure a deal before new tariffs imposed by President Donald Trump take effect. Canadian and American trade negotiators are expected to meet for a third day in Washington, with Canada's trade minister, Dominic LeBlanc, and U.S. Trade Representative Jamie Broussard scheduled to discuss the terms of an agreement.
If no resolution is reached, Trump has threatened to impose an additional 50% tariff on approximately $20 billion worth of Canadian goods starting at midnight EDT on Saturday. Canadian Trade Minister Dominic LeBlanc met with U.S. Trade Representative Jamie Broussard for over three hours on Thursday, stating that the two sides are very close to reaching an agreement, though further discussions are required.
Canada seeks relief from tariffs on sectors such as automobiles, steel, and aluminum, which have caused economic strain and job losses. The proposed deal would lower tariffs on Canadian-built vehicles to 15% from 25% and halve tariffs on steel and aluminum to 25%, although it may not restore trade conditions to their pre-Trump era.
Saskatchewan Premier Scott Moe emphasized that there is no returning to the pre-Trump status quo, while Ontario, a significant steel and aluminum producer, demands the removal of the tariffs entirely. Canada's economy is heavily reliant on the U.S. market, with about 70% of its exports headed south. Prime Minister Mark Carney may face domestic political pressure if the deal necessitates additional concessions, as a recent Leger opinion poll found that 56% of Canadians prefer Carney to refrain from making further concessions.
The trade talks follow 18 months of strained relations, with both countries imposing countermeasures. The potential agreement could de-escalate the dispute if finalized before the threatened tariffs take effect, but Canadian officials and provincial leaders hold differing views on the extent of concessions Ottawa should make.
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