Canada and the U.S. are still far from reaching a tariff agreement as the deadline set by U.S. President Donald Trump approaches. Canadian officials are reportedly dissatisfied with the latest offer from the U.S., according to insider sources familiar with the trade negotiations. The American proposal presented on Tuesday aimed to reduce some sectoral tariffs but fell short of meeting Canada’s expectations.
Both sides have been engaged in discussions in the lead-up to the August 19 deadline, when Trump has threatened to impose a 50% tariff on numerous Canadian goods in addition to the existing sectoral tariffs. The U.S. is pushing for a deal that would grant them preferential access to Canadian critical minerals, covering aspects of security and energy.
Canada’s Trade Minister, Dominic LeBlanc, has been actively meeting with U.S. Trade Representative Jamieson Greer in Washington in an effort to find common ground. The Canadian delegation has emphasized to their American counterparts that there would be little support among Canadians for continued negotiations if the August 19 tariffs are implemented.
Daily meetings are scheduled at various levels between the two sides leading up to the tariff deadline. LeBlanc and Canada’s chief trade negotiator, Janice Charette, are also seeking relief from the existing U.S. tariffs on Canadian steel, aluminum, lumber, and automobiles. Additionally, they hope that the ongoing trade discussions will lead to a renewal of the Canada-U.S.-Mexico Agreement (CUSMA) following the Trump administration’s decision not to extend the deal beyond 2036.
Amidst the escalating trade tensions, Conservative Leader Pierre Poilievre has urged the Canadian government to stand firm in negotiations, emphasizing the importance of securing a favorable deal for Canada. Industry sources have indicated that Canada is considering meeting certain U.S. demands, such as ending alcohol bans, in exchange for tariff concessions.