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. Two sources familiar with the trade negotiations have revealed that Canadian officials are dissatisfied with the most recent offer from the U.S.
Recent discussions between negotiators have centered on a new proposal put forward by the Americans on Tuesday. This proposal aims to reduce some sectoral tariffs, although not to the extent desired by the Canadian side. The sources, who are not authorized to speak publicly, stated that the offer falls short of Canadian expectations.
Efforts to secure a deal before August 19, the deadline set by Trump for imposing a 50% levy on numerous Canadian goods in addition to existing sectoral tariffs, have been ongoing. The U.S. is particularly interested in securing preferential access to Canadian critical minerals and addressing security and energy concerns in the proposed deal.
To facilitate negotiations, Canada-U.S. Trade Minister Dominic LeBlanc has met with U.S. Trade Representative Jamieson Greer three times in the last few weeks. Both parties are working towards presenting Trump with a potential trade agreement in the coming days.
There has been a clear message from the Canadian side that if the August 19 tariffs go into effect, there will be little support among Canadians to continue negotiations. Daily meetings at various levels have been agreed upon by both sides leading up to the imminent deadline.
Despite the ongoing discussions, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, have responded to reporters’ inquiries following their meeting with Greer. LeBlanc has indicated that discussions are ongoing and that they remain committed to negotiations.
Apart from pushing back against new tariffs, the Canadian officials are seeking relief from the tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. Additionally, Canada hopes that the current trade talks with the U.S. will lead to the renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined an extension beyond 2036 last month.
In light of the impending tariffs, the U.S. has raised concerns about various 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.
Conservative Leader Pierre Poilievre has urged for a strong stance in negotiations, emphasizing the need for a beneficial deal for Canadians. Industry sources suggest that Canada is willing to make concessions, such as ending alcohol bans, in exchange for tariff relief.