Canadian and American negotiators plan to convene once more on Tuesday to work towards reaching an agreement to prevent new U.S. tariffs on approximately $30 billion worth of Canadian goods set to go into effect shortly after midnight. Sources disclosed that Canada-U.S. Trade Minister Dominic LeBlanc is expected to meet with U.S. Trade Representative Jamieson Greer, followed by a discussion between Prime Minister Mark Carney and U.S. President Donald Trump.
At present, the timing for these discussions has not been finalized, and there remains a possibility of the negotiations breaking down, according to one source. The talks are centered around averting the implementation of Section 338 tariffs, with Canada seeking concessions from the U.S. in return for its own adjustments. LeBlanc is advocating for the removal of Section 338 tariffs and a reduction in existing Section 232 tariffs on industrial products such as steel, aluminum, autos, and lumber.
The U.S. is pushing for the reinstatement of American liquor in Canadian stores, cessation of Canada’s retaliatory tariffs on U.S. autos, and revisions to the dairy sector’s quota allocation system. While the U.S. has indicated reluctance to completely eliminate its tariff structure, there are indications that flexibility may be shown if certain demands are met by Canada.
Industry insiders have noted discrepancies between the Canadian expectations and the U.S. offers, particularly in sectors like autos and steel. Business interests are urging Carney to strike a deal with Trump to normalize trade relations. The U.S. Chamber of Commerce has also called for a resolution to prevent further tariffs that could negatively impact businesses on both sides of the border.
However, there are conflicting pressures, notably from the dairy sector, to avoid making significant concessions. The U.S. government and American dairy groups are advocating for changes in Canada’s dairy tariff-rate quotas to facilitate the sale of U.S. dairy products in Canadian stores, a move resisted by Canadian dairy farmers concerned about food sovereignty.
As the deadline looms, the negotiations remain delicate and intense, with both countries striving to find common ground to avert escalating trade tensions.
