Canada and the U.S. are still far from reaching a tariff deal as the deadline set by President Donald Trump approaches. According to informed sources, the latest offer from the U.S. has not met Canada’s expectations. The proposal presented by the Americans on Tuesday aimed to reduce certain sectoral tariffs, but not to the extent desired by the Canadian side.
Both countries have been engaged in ongoing negotiations in an attempt to secure an agreement before Trump’s deadline of August 19, which includes imposing a 50% levy on numerous Canadian goods on top of existing sectoral tariffs. The U.S. is pushing for a deal that would provide favorable access to critical minerals in Canada while addressing security and energy concerns.
Canadian Trade Minister Dominic LeBlanc has been actively meeting with U.S. Trade Representative Jamieson Greer in Washington to discuss potential trade terms. The Canadian delegation has emphasized to their American counterparts the lack of public support in Canada for continuing talks if the August 19 tariffs are implemented.
Daily meetings are scheduled at various levels between the two sides leading up to the deadline. LeBlanc and Canada’s chief trade negotiator, Janice Charette, are also seeking relief from the current tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. Additionally, Canada hopes that the trade discussions will result in the renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined to extend the deal beyond 2036 last month.
The U.S. cited several trade issues, including Canada’s response to U.S. trade policies, such as removing U.S. alcohol from provincial stores and alleged discrimination against U.S. motor vehicles and dairy products, when announcing the August 19 tariffs.
Conservative Leader Pierre Poilievre has urged for a robust stance in the negotiations, emphasizing the need for a favorable deal that includes zero tariffs on softwood lumber, eliminating sectoral tariffs on steel and aluminum, a tariff-free auto agreement, and full exemption from Buy America regulations on infrastructure projects. Industry sources have indicated that Canada is willing to address some U.S. demands, including ending the alcohol bans, in exchange for tariff relief.