Concerns are rising among Canadian negotiators about the potential imposition of new U.S. tariffs starting this Wednesday. Ottawa is facing challenges in seeking relief from existing sectoral tariffs while also attempting to convince provinces to lift restrictions on American alcohol, sources reveal to CBC News.
Multiple sources, both in Canada and the U.S., who have been briefed on the negotiations and granted confidentiality to provide insights, indicate the complexity of the ongoing talks.
The negotiations are becoming more intense, with Canada-U.S. Trade Minister Dominic LeBlanc engaging in discussions with U.S. Trade Representative Jamieson Greer for the third time in less than a week, during a virtual meeting that lasted about an hour on Sunday afternoon.
Ottawa’s recent objective has been to secure a “comprehensive agreement” with Washington. The desired outcome includes persuading the Trump administration to abandon the looming 50 per cent tariffs on nearly $28 billion worth of Canadian goods, set to take effect this Wednesday, representing around five per cent of Canada’s exports to the U.S.
Central to this agreement is a request for the Trump administration to reduce the existing sectoral tariffs affecting industries such as steel, aluminum, auto, and lumber. Currently, steel and aluminum face 50 per cent tariffs, while autos face tariffs of 25 per cent.
United States Trade Representative Jamieson Greer comments on trade negotiations with Canada, emphasizing significant trade challenges over the years. Greer underlines the importance of resolving issues and avoiding any retaliatory actions.
Sources emphasize the importance of pursuing a comprehensive deal that addresses both the removal of new tariffs and the reduction of existing sectoral tariffs to garner provincial support. Notably, the Trump administration has made the resumption of U.S. alcohol sales in Canada a non-negotiable aspect in the talks.
However, disagreements persist as the U.S. has not shown willingness to substantially decrease the current sectoral tariffs. The gap between the two countries on critical issues remains wide, as reported by CBC News.
Some provinces are adamant about retaining their bans on American alcohol until relief is provided on tariffs affecting their industries. This stance is causing complications for Ottawa, with fears emerging that a finalized deal might be unattainable if provincial opposition persists.
Canada’s Willingness to Compromise
Sources indicate that Canada may