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 reportedly dissatisfied with the most recent offer from the U.S., as per informed sources. The Americans presented a new proposal on Tuesday that would reduce some sectoral tariffs, but not to the extent desired by Canada. Negotiations have been ongoing in an attempt to secure a deal before Aug. 19, the deadline set by Trump for imposing a 50 percent levy on numerous Canadian goods in addition to existing sectoral tariffs.
The U.S. is pushing for a deal that would grant them preferential access to Canadian critical minerals, while also covering security and energy aspects, according to sources familiar with the discussions. Canadian Trade Minister Dominic LeBlanc has held multiple meetings with U.S. Trade Representative Jamieson Greer in Washington recently, with the aim of presenting a potential trade deal proposal to Trump soon.
It has been emphasized to the Americans by the Canadian side that there would be little support among Canadians for continuing talks if the Aug. 19 tariffs are imposed. Both parties have agreed to daily meetings at various levels leading up to the deadline. Following their meeting with Greer on Tuesday, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, responded to reporters’ inquiries.
LeBlanc later confirmed that discussions are ongoing and that he and Charette will persist in engaging at the negotiation table. They are also seeking relief from the tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. Additionally, Canada hopes that the ongoing trade discussions will lead to 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. highlighted several trade issues when announcing the Aug. 19 tariffs, including Canada’s response to U.S. trade policies by removing U.S. alcohol from provincial stores and alleged Canadian discrimination against U.S. motor vehicles and dairy products. Conservative Leader Pierre Poilievre has urged Carney to stand firm in the negotiations, emphasizing the importance of securing a beneficial deal for Canadians. Industry sources have indicated that Canada is prepared to address some U.S. demands, such as lifting the alcohol bans, in exchange for tariff relief.