Canada and the U.S. are still far from reaching a tariff agreement as the deadline set by U.S. President Donald Trump approaches. Two sources familiar with the trade discussions have revealed that Canadian officials are dissatisfied with the latest offer from the U.S. According to insiders from both sides of the border, the U.S. presented a new proposal on Tuesday aimed at reducing some sectoral tariffs, albeit not to the extent desired by the Canadian side. The deadline for potential tariffs on hundreds of Canadian goods, in addition to existing sectoral tariffs, is set for August 19, prompting negotiators to engage in ongoing exchanges in an attempt to secure a deal.
Reports indicate that the U.S. is pushing for an agreement that would grant them preferential access to Canadian critical minerals, covering aspects of security and energy. Canadian Trade Minister Dominic LeBlanc has been actively meeting with U.S. Trade Representative Jamieson Greer in Washington in recent weeks, with efforts focused on presenting a potential trade deal to Trump as soon as possible. It has been emphasized to American counterparts that if the Aug. 19 tariffs are imposed, there will be limited support from Canadians to continue negotiations.
Both sides have committed to daily meetings at various levels leading up to the tariff deadline. LeBlanc and Canada’s chief trade negotiator, Janice Charette, have been advocating not only against the imposition of new tariffs but also for relief from existing U.S. tariffs on Canadian steel, aluminum, lumber, and automobiles. Additionally, Canada hopes that the ongoing trade discussions will result in a renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined to extend the deal beyond 2036 last month.