Canadian official says 'more work to do' on US trade deal

Canadian negotiator Dominic LeBlanc stated that the US trade deal was not finalized as the midnight deadline approached, with steep tariffs set to take effect. He emphasized that their work was not yet complete and they would continue until the last minute. US President Donald Trump had threatened to impose new 50% duties on Canadian products, but ultimately delayed the decision, citing progress in the talks.

LeBlanc arrived at US Trade Representative Jamie Greer's office with his team and only left around 7:30 PM after hours of negotiations. Earlier, Trump expressed interest in a deal with Canada, citing his good relationship with Prime Minister Mark Carney. Canada seeks relief from Trump's tariffs on autos, steel, and aluminum, which have severely impacted the Canadian economy, causing job losses and straining a once strong trade relationship.

While US tariffs may be reduced in certain areas, a complete removal is unlikely, with Saskatchewan Premier Scott Moe stating there is no going back to the pre-Trump status quo. Trade lawyer Ryan Majerus noted that Washington's willingness to reduce sector-specific tariffs dramatically increases the potential for a deal, though Ottawa is under pressure to get tariffs removed, with potential public dissatisfaction.

Canadian opposition leader Pierre Poilievre warned that one-sided tariffs on Canadian industry would be a bad deal, noting that only Canadian companies pay the tariffs. The United States has been particularly upset by Canada removing US alcohol and wine from liquor stores. Carney asked provinces to restock US booze, but some agreed while others remained hesitant.

Quebec Premier Christine Frechette requested time to study the deal, while Manitoba's left-wing Premier Wab Kinew suggested Canada should fight. Ontario Premier Doug Ford, a vocal critic of the trade war, has remained silent. Trump has told Canadians that relations with the US are forever changed, regardless of the deal outcome, and the country needs to diversify and reduce its reliance on the United States, which currently accounts for about 70% of Canadian exports.

The US and Canada still need to agree on revisions to the North American Free Trade Agreement (USMCA), which Trump declined to renew last month.