Canada’s Trade Minister Dominic LeBlanc and the U.S. Trade Representative are working towards presenting a potential trade deal to President Donald Trump by Monday, sources informed CBC News. The goal is to offer the proposal to Trump a day before the upcoming tariff deadline to allow for a final decision before new levies on Canadian imports take effect on August 19.
LeBlanc and the U.S. Trade Representative recently held a meeting in Washington, their third face-to-face encounter in as many weeks. Discussions are ongoing, with efforts aimed at avoiding new tariffs on Canadian goods and seeking relief from existing sectoral tariffs on steel, aluminum, lumber, and automobiles imposed by the U.S.
The trade talks also involve hopes for an extension of the Canada-U.S.-Mexico Agreement (CUSMA), particularly after the Trump administration declined to renew the deal in July. The proposal being developed by LeBlanc and officials includes various trade-related issues and is intended to address concerns raised by the U.S. regarding Canadian trade policies.
In response to the looming tariffs, which cover about five percent of Canadian exports to the U.S., there have been tensions over trade irritants, such as Canada’s actions against U.S. alcohol sales and alleged discriminatory practices in the automotive and dairy sectors. The impact of these disputes has been felt in reduced exports of alcohol products to Canada, with significant drops in wine and spirit exports.
Conservative MPs have urged the Canadian government to take a firm stance in negotiations with the U.S. to secure a favorable trade deal. Conservative Leader Pierre Poilievre emphasized the importance of achieving zero tariffs on softwood lumber, ending sectoral tariffs on steel and aluminum, ensuring tariff-free auto arrangements, and securing exemptions from Buy America rules for infrastructure projects.
As trade discussions intensify, stakeholders are closely monitoring the developments to gauge the outcomes of the negotiations between Canada and the U.S.