As the deadline for President Donald Trump’s latest tariff approaches, Canada and the U.S. are still far from reaching a tariff agreement. Canadian officials are reportedly dissatisfied with the most recent U.S. proposal, as per knowledgeable sources on both sides of the border.
The new U.S. proposal presented on Tuesday aimed to reduce some sectoral tariffs, but it fell short of meeting Canada’s expectations. Negotiations have been ongoing in the past weeks to try and strike a deal before August 19, the deadline set by Trump for imposing a 50 percent levy 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 critical minerals in Canada, covering areas such as security and energy. Canada’s Trade Minister Dominic LeBlanc has held multiple meetings with U.S. Trade Representative Jamieson Greer in Washington recently, with the goal of outlining a potential trade agreement to present to Trump.
It has been emphasized to the Americans by the Canadian side that if the August 19 tariffs are imposed, there would be little support among Canadians to continue negotiations. Both parties have agreed to daily meetings leading up to the deadline.
Despite not responding to reporters’ questions after their meeting with Greer, LeBlanc and Canada’s chief trade negotiator Janice Charette are actively seeking relief from the tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. Additionally, Canada aims for the renewal of the Canada-U.S.-Mexico Agreement (CUSMA) following the Trump administration’s decision not to extend the deal beyond 2036.
In response to the U.S. raising trade concerns, including Canada’s actions against U.S. alcohol sales and alleged discrimination in the auto and dairy industries, Canada is prepared to address some U.S. demands to alleviate tariffs. Conservative Leader Pierre Poilievre has urged for a fair deal, advocating for zero tariffs on softwood lumber, an end to sectoral steel and aluminum tariffs, a tariff-free auto pact, and exemption from Buy America rules on infrastructure projects.