As the deadline for U.S. President Donald Trump’s latest tariff approaches, Canada and the U.S. have not yet found common ground on a tariff agreement. Two sources familiar with the trade discussions revealed that Canadian officials are dissatisfied with the most recent offer from the U.S.
Both American and Canadian sources disclosed that the U.S. put forth a new proposition on Tuesday to reduce certain sectoral tariffs, but the reduction is not as substantial as desired by the Canadian side. The negotiations have been ongoing in an attempt to finalize a deal before the looming deadline of August 19, when Trump has pledged to impose a 50% levy on numerous Canadian products, in addition to the existing sectoral tariffs.
The U.S. is pushing for an agreement that would grant them privileged access to crucial Canadian minerals, while also covering security and energy aspects, according to the sources. Dominic LeBlanc, the Canadian Minister of Trade with the U.S., has had multiple meetings with U.S. Trade Representative Jamieson Greer in Washington over the past few weeks to work towards presenting Trump with a potential trade agreement.
Reportedly, the Canadian negotiators have strongly emphasized to their American counterparts that if the August 19 tariffs are implemented, there would be little support among Canadians to continue the discussions. Both sides have committed to holding daily meetings at various levels leading up to the deadline.
Following a meeting between LeBlanc, Charette, and Greer, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, responded to reporters’ inquiries. LeBlanc later confirmed that talks are ongoing and they will persist in negotiations. As of Wednesday night, both officials are still in Washington.
In addition to urging the U.S. to refrain from imposing new tariffs, LeBlanc and Charette are also seeking relief from the tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. Canada is hopeful that the ongoing trade discussions will result in a renewal of the Canada-U.S.-Mexico Agreement (CUSMA), especially after the Trump administration declined to extend the agreement beyond 2036 last month.
Conservative Leader Pierre Poilievre has urged action in the negotiations, emphasizing the importance of securing a beneficial deal for Canadians, including zero tariffs on softwood lumber, elimination of sectoral tariffs on steel and aluminum, a tariff-free auto pact, and full exemption from Buy America regulations on infrastructure projects. Industry sources have indicated that Canada is considering meeting some U.S. demands, such as lifting the booze bans, in exchange for tariff relief.