Canadian minister LeBlanc says more work needed in talks with US before tariff deadline

On Friday, top trade negotiators from Canada and the United States met in Washington for the third consecutive day to finalize a trade deal before impending new tariffs from the U.S. were set to take effect on Saturday. U.S. President Donald Trump had expressed confidence in the likelihood of an agreement, though he did not offer specifics. He also mentioned that the U.S. was simultaneously negotiating a trade deal with Mexico.

Trump spoke to reporters at Joint Base Andrews, Maryland, noting his positive relationship with Canadian Prime Minister Mark Carney and stating that the Canadian deal was progressing. The proposed deal could demonstrate a shift in the tense relations between the two nations, which had been strained since Trump's imposition of tariffs on key Canadian imports 18 months ago, leading to a reciprocal response from Canada.

Canadian Trade Minister Dominic LeBlanc, who did not speak to reporters upon arrival for the talks, reportedly met with LeBlanc for over three hours on Thursday. LeBlanc indicated that they were "very close" to a deal but emphasized the need for further work. Even with an agreement, Carney might face challenges in convincing Canadians and the influential premiers of the 10 provinces to support the deal. According to a recent Leger opinion poll, 56% of Canadians want Carney to refrain from making additional concessions.

Approximately 70% of Canada's exports go to the U.S., making it particularly vulnerable to punitive trade actions. Sources suggest that an agreement could lower tariffs on Canadian-built vehicles from 25% to 15% and halve tariffs on steel and aluminum to 25%. However, a significant hurdle for any deal is Ontario's steel and aluminum producers who wish to see the tariffs eliminated entirely.

Ontario Premier Doug Ford has called for the scrapping of these tariffs. Meanwhile, Manitoba Premier Wab Kinew suggested that Trump was "very weak" and that Canada should capitalize on this perceived vulnerability. Carney, however, urged major Canadian provinces to rescind their ban on U.S. alcohol sales, a contentious issue for Washington.