Canada and the United States are currently at a standstill in tariff negotiations as the deadline set by President Donald Trump approaches. Sources familiar with the discussions have revealed that Canadian officials are not content with the latest proposal put forward by the U.S.
The American side presented a new plan on Tuesday that aimed to reduce some sectoral tariffs but fell short of meeting Canadian expectations. Both countries have been engaging in back-and-forth talks in a bid to secure a deal before August 19, the deadline when Trump plans to impose a 50% tariff on numerous Canadian goods, in addition to existing sectoral tariffs.
In pursuit of an agreement, the U.S. is pushing for preferential access to critical minerals from Canada, alongside discussions on security and energy matters. Trade Minister Dominic LeBlanc has been actively meeting with U.S. Trade Representative Jamieson Greer in Washington, with the goal of presenting a potential trade deal to Trump soon.
It has been emphasized to the American counterparts that if the August 19 tariffs are implemented, there would be little willingness among Canadians to continue negotiations. To address this urgency, both sides have committed to daily meetings leading up to the deadline.
Despite leaving Greer’s office without commenting to reporters, LeBlanc later confirmed ongoing discussions and reiterated his commitment to negotiation efforts. The focus of the talks also includes seeking relief from existing U.S. tariffs on Canadian steel, aluminum, lumber, and automobiles.
In addition to resolving tariff issues, Canada aims to renew the Canada-U.S.-Mexico Agreement (CUSMA), which the Trump administration declined to extend beyond 2036 last month. The U.S. has raised concerns about various trade matters, including Canada’s response to U.S. trade policies, such as alcohol bans and alleged discrimination against American vehicles and dairy products.
Conservative Leader Pierre Poilievre has urged a strong stance in negotiations, demanding zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto agreement, and exemption from Buy America rules on government infrastructure projects. Reports suggest that Canada is willing to address some U.S. demands, like ending alcohol bans, in exchange for tariff relief.