Canada says more work needed as US trade deal deadline looms

Canada's trade minister, Dominic LeBlanc, stated on Friday that a trade deal with the United States has not been finalized. Both nations are in a race to reach an agreement before new US tariffs are set to take effect. LeBlanc emphasized that there is still work to be done and they will continue their efforts until the very last minute.

This comes after President Donald Trump expressed his hope for a deal with Canada, citing his good relationship with Prime Minister Mark Carney. In July, Trump threatened to impose 50% duties on some Canadian products by Wednesday, but later announced a three-day pause due to significant progress in trade talks. If a deal is not reached by Saturday at 12:01 a.m. EDT (0401 GMT), the tariffs would come into force.

Reuters reported that the deal is anticipated to lower US tariffs on Canadian-made vehicles from 25% to 15% and halve duties on Canadian steel and aluminum to 25%. The United States currently makes up about 70% of Canadian exports, making Canada susceptible to punitive US trade actions. Even if a deal is reached, Prime Minister Carney may need to persuade Canadians and the premiers of the country's 10 provinces to accept it.

A recent poll by Leger found that 56% of Canadians prefer the government to take a firm stance and make no further concessions to the US. Prime Minister Carney has been urging major provinces to reconsider reintroducing US alcohol back onto shelves, which was a retaliatory measure in response to the tariffs Trump imposed on Canadian goods. Quebec Premier Christine Frechette stated she would evaluate the deal before forming an opinion, while Manitoba Premier Wab Kinew advised Canada to continue fighting.