Canada’s Trade Minister Dominic LeBlanc and the U.S. Trade Representative are working on presenting a potential trade deal to U.S. President Donald Trump by Monday. The joint proposal aims to be delivered to Trump a day before the upcoming tariff deadline to allow him time for a final decision before new 50 percent tariffs on numerous Canadian imports go into effect on August 19.
LeBlanc and U.S. Trade Representative Jamieson Greer met in Washington for the third time in three weeks to discuss the trade negotiations. Following the meeting, LeBlanc mentioned that discussions are ongoing, and both parties will continue engaging at the negotiation table.
The trade representatives are seeking to prevent new tariffs on Canadian imports and are also pushing for relief on sectoral tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. Additionally, they hope for an extension of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration decided not to renew the deal back in July.
The U.S. had highlighted several trade issues when announcing the August 19 tariffs, including Canada’s response to U.S. trade policies, such as the removal of U.S. alcohol from provincial stores. This move has impacted wine and spirit exports to Canada. The targeted tariffs cover approximately five percent of Canadian exports, including goods like alcohol, hockey sticks, and cement.
Conservative politicians have urged Canada to negotiate from a strong position, emphasizing the importance of securing a favorable trade agreement with the U.S. Prime Minister Mark Carney has been under pressure to deliver on trade promises, with calls for zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact, and exemptions to Buy America rules on infrastructure projects.
The ongoing efforts to pitch a trade deal to President Trump before the tariff deadline reflect the importance of resolving trade tensions between Canada and the U.S.