Canada and the United States are still at odds during ongoing negotiations for a tariff agreement ahead of the deadline set by President Donald Trump, according to insider sources. The federal government is cautious about the possibility of an imminent tariff deal as significant disagreements persist between the two sides, causing them to be at a considerable distance on key issues that require resolution.
Dominic LeBlanc, the Canada-U.S. Trade Minister, updated his provincial and territorial counterparts on the progress of the negotiations, as well as briefed members of the prime minister’s advisory committee on Canada-U.S. economic relations. Despite the optimism initially present, one source familiar with the discussions mentioned a diminishing sense of positivity from the Canadian side, noting that the Americans are holding firm on their latest proposal. This offer includes a reduction of sectoral tariffs on automobiles to 12.5 per cent, a proposition deemed inadequate by the Canadian negotiators.
Quebec’s Economy Minister Bernard Drainville, who received a briefing from LeBlanc, emphasized the significant disparity that remains between Canada and the U.S. regarding the agreement. Erin O’Toole, a former Conservative leader and committee member, echoed the sentiment, describing the current positions of both countries as still being far apart.
Reports indicate that Canadian negotiators have shown a sense of urgency, as the looming threat of 50 per cent tariffs on Canadian goods by Trump has heightened the pressure to reach a resolution. Talks have been described as “constructive,” with discussions revolving around potential tariff relief in exchange for concessions from Canada. Both sides are aiming to find common ground to avoid the implementation of new tariffs, while also addressing existing sectoral tariffs on Canadian steel, aluminum, autos, and forest products.
The negotiations have become increasingly challenging, with key issues such as supply management in the dairy industry being contentious points of contention. Quebec Premier Christine Fréchette emphasized the importance of preserving Canada’s supply management system, particularly concerning dairy products, which has been a longstanding concern for the U.S.
The federal government has advised provinces to prepare for the reintroduction of American alcohol products on shelves if a tariff deal is reached. Additionally, provinces and territories have been asked to be ready to retract certain procurement regulations favoring Canadian suppliers in the event of an agreement.
Despite ongoing efforts to bridge the gap between the two countries, the uncertainty surrounding the negotiations and the looming tariff threats have created a sense of urgency for both parties to find a mutually acceptable resolution.