As the deadline for U.S. President Donald Trump’s latest tariff approaches, Canada and the U.S. have not yet come to an agreement on tariffs. Canadian officials are dissatisfied with the most recent offer from the U.S., according to two sources familiar with the trade discussions.
Both American and Canadian sources have revealed that the U.S. presented a new proposal on Tuesday, intending to reduce certain sectoral tariffs. However, the proposed reductions were not as significant as desired by the Canadian side. The identities of the sources are being kept confidential as they were not authorized to speak publicly.
Negotiators have been engaged in ongoing discussions in recent weeks in an attempt to finalize a deal before the looming deadline of August 19. Trump has threatened to impose a 50 percent tariff on numerous Canadian goods in addition to the existing sectoral tariffs.
Sources have disclosed that the U.S. is aiming for a deal that would provide privileged access to crucial Canadian minerals and cover aspects related to security and energy.
Dominic LeBlanc, the Canada-U.S. Trade Minister, has visited Washington three times in as many weeks to meet with U.S. Trade Representative Jamieson Greer. Their goal, as previously reported by CBC News, is to present Trump with a potential trade agreement as early as Monday.
Recent reports revealed that the Canadian side has strongly emphasized to the Americans that there would be little support among Canadians for continued negotiations if the August 19 tariffs are implemented.
Both parties have agreed to hold daily meetings at various levels leading up to the deadline to address these critical trade issues.
LeBlanc and Charette, Canada’s chief trade negotiator, did not respond to reporters’ inquiries after leaving Greer’s office on Tuesday. LeBlanc later stated that discussions are ongoing and that they remain actively engaged in negotiations.
Efforts are being made to dissuade the U.S. from imposing new tariffs, particularly on Canadian steel, aluminum, lumber, and automobiles. Additionally, Canada hopes that the ongoing trade discussions will lead to a renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined to extend the deal beyond 2036 last month.
In response to the U.S. announcement of the August 19 tariffs, various trade issues were raised, including Canada’s response to U.S. trade policies, such as the removal of U.S. alcohol from provincial stores, and alleged discrimination against U.S. motor vehicles and dairy products.
Conservative Leader Pierre Poilievre recently urged action from negotiators, emphasizing the need for a favorable deal that includes zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact, and exemptions to Buy America rules for infrastructure projects.
There are indications that Canada is willing to meet certain U.S. demands, like ending the alcohol bans, in exchange for tariff relief.