Canada and the United States are still far from reaching a tariff agreement as the latest U.S. proposal falls short of Canadian expectations, according to inside sources. The U.S. put forward a new plan on Tuesday to reduce certain sectoral tariffs, but it did not meet the desired level from the Canadian side. Negotiations have been ongoing in the lead-up to the looming deadline on August 19, set by President Donald Trump for imposing a 50% tariff on hundreds of Canadian products in addition to existing sectoral tariffs.
The American proposal aims to secure preferential access to critical minerals from Canada and cover aspects of security and energy. Canadian Trade Minister Dominic LeBlanc has been engaging with U.S. Trade Representative Jamieson Greer in Washington over the past few weeks in an effort to present a potential trade deal to Trump. Despite this, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, provided comments to the media after their meeting with Greer on Tuesday afternoon.
LeBlanc has indicated that discussions are ongoing, and they will continue negotiations at the table. In addition to warding off new tariffs, Canadian officials are seeking relief from existing U.S. tariffs on steel, aluminum, lumber, and automobiles. They are also hopeful that ongoing talks will lead to a renewal of the Canada-U.S.-Mexico Agreement (CUSMA) following the Trump administration’s recent decision not to extend the deal beyond 2036.
The U.S. had cited various trade grievances when announcing the upcoming tariffs, including Canada’s response to U.S. trade policies by removing American alcohol from provincial stores, as well as alleged discrimination against U.S. motor vehicles and dairy products. Conservative Leader Pierre Poilievre has urged for a strong stance in negotiations, emphasizing the importance of securing favorable terms for Canada, such as zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact, and exemptions from Buy America regulations on infrastructure projects at all government levels. Industry insiders have indicated that Canada is ready to make concessions, including lifting alcohol bans, in exchange for tariff relief.
