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 sources familiar with the ongoing trade discussions. The U.S. offered a new plan on Tuesday to reduce certain sectoral tariffs, but not to the extent desired by Canada. Negotiators have been actively engaging in talks to find common ground before the looming August 19 deadline, when President Donald Trump plans to impose a 50 percent tariff on a wide range of Canadian goods, in addition to existing sectoral tariffs.
The U.S. is pushing for a deal that would grant them preferential access to Canadian critical minerals, while also covering security and energy aspects. Canadian Trade Minister Dominic LeBlanc has been in Washington holding discussions with U.S. Trade Representative Jamieson Greer multiple times in recent weeks, with the aim of presenting a potential trade agreement to Trump by Monday.
Canadian officials have emphasized to their American counterparts that if the August 19 tariffs are implemented, there would be little support in Canada to continue negotiations. Daily meetings are scheduled at various levels leading up to the deadline. Despite inquiries from reporters, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, provided details following their meeting with Greer.
LeBlanc confirmed that talks are ongoing and both he and Charette will persist in negotiations. They are also seeking relief from the tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. Additionally, Canada hopes that the trade discussions will lead to a renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined to extend the deal beyond 2036 last month.
The U.S. highlighted various trade grievances, 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 urged for a strong stance in negotiations, emphasizing the need for 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.
Industry sources suggest that Canada is willing to address some U.S. demands, such as lifting the alcohol bans, in exchange for tariff relief. Both countries are actively engaged in discussions as the tariff deadline approaches.