As the deadline for President Donald Trump’s latest tariff approaches, Canada and the United States have not yet come to an agreement on tariffs, with Canadian officials expressing dissatisfaction with the most recent offer from the U.S., as per informed sources. The American side proposed a new plan on Tuesday, aiming to reduce some sectoral tariffs, but not to the extent desired by Canada. Negotiations have been ongoing in the past few weeks to reach a resolution before the Aug. 19 deadline when Trump plans to impose a 50 percent levy on numerous Canadian products, in addition to existing sectoral tariffs.
The U.S. is pushing for a deal that would grant them preferential access to Canadian critical minerals, covering security and energy aspects, sources revealed. Canadian Trade Minister Dominic LeBlanc has been actively engaging with U.S. Trade Representative Jamieson Greer in Washington, holding meetings multiple times in recent weeks, to present a potential trade deal to Trump soon.
Canadian officials have strongly emphasized to the Americans that if the Aug. 19 tariffs are imposed, there would be little support within Canada to continue negotiations. Both sides have committed to daily meetings at various levels until the looming deadline. LeBlanc and chief trade negotiator Janice Charette are also seeking relief from the tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles.
Additionally, Canada is hoping for the renewal of the Canada-U.S.-Mexico Agreement (CUSMA) during the ongoing talks, especially after the Trump administration declined to extend the deal beyond 2036 last month. The U.S. highlighted various trade disputes, including Canada’s response to U.S. trade policies, such as alcohol bans, alleged discrimination against American vehicles and dairy products, when announcing the upcoming tariffs.
Conservative Leader Pierre Poilievre urged for a robust stance in trade negotiations, calling for zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact, and complete exemption from Buy America regulations for infrastructure projects at all government levels. Industry sources disclosed that Canada is ready to address some U.S. demands, including lifting alcohol bans, in exchange for tariff relief.
