Canada and the United States are still far from reaching a tariff agreement as the deadline set by President Donald Trump approaches. According to sources familiar with the negotiations, the latest offer from the U.S. falls short of Canadian expectations. The proposal presented on Tuesday aimed to reduce certain tariffs, but not to the extent desired by the Canadian side.
Both countries have been engaged in discussions in an attempt to secure a deal before August 19, the date when Trump plans to impose a 50% tariff on numerous Canadian products in addition to the existing sectoral tariffs. The U.S. is pushing for preferential access to critical minerals from Canada, as well as coverage on security and energy matters.
Dominic LeBlanc, the Canadian Minister of Trade with the U.S., has been meeting with U.S. Trade Representative Jamieson Greer in Washington frequently. It was previously reported that they are working towards presenting Trump with a potential trade agreement soon.
Canadian officials have emphasized to their American counterparts that there would be little support from Canadians to continue negotiations if the August 19 tariffs are imposed. Daily meetings are scheduled at various levels leading up to the deadline.
LeBlanc and Janice Charette, Canada’s chief trade negotiator, are also seeking relief from the tariffs that the U.S. has imposed on Canadian steel, aluminum, lumber, and automobiles. Additionally, they are hoping that ongoing talks will result in the renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined to extend the deal beyond 2036 last month.
In response to the upcoming tariffs, the U.S. has raised concerns about various trade issues, including Canada’s response to U.S. trade policies and alleged discrimination against American products. The negotiations are intensifying as both sides aim to find common ground before the looming deadline.