Canada, US Race Clock as 50% Tariff Deadline Nears

Washington: With less than four hours to go before a threatened 50% tariff on Canadian imports was set to take effect, Canada's minister for US trade relations said Friday that significant work remained. Dominic LeBlanc emerged from the office of US Trade Representative Jamieson Greer after hours of discussions, stating, "We are going to continue working up until the last minute. Our job is not finished."

The two countries have now held a third consecutive day of high-level talks in Washington, aiming to finalize a deal that would roll back existing duties and prevent new ones. President Donald Trump has threatened to impose the 50% tariff on roughly $20 billion worth of Canadian goods at 12:01 a.m. EDT Saturday if no agreement is reached.

Earlier in the day, Trump told reporters he expected a deal, citing a good relationship with Prime Minister Mark Carney. "The deal with Canada is moving along, and we should be able to have a deal with Canada," he said. He also noted that work toward a separate trade agreement with Mexico was beginning.

LeBlanc's office, in an email to an advisory committee, described the talks as "complex and consequential," acknowledging the intense pressure on negotiators. "This is an intense moment. The stakes are significant," the email read. The minister met Greer for over three hours on Thursday and had said the two sides were "very close" to a deal.

A potential agreement would mark a thaw in 18 months of tense relations, which began with US tariffs on key Canadian imports and Ottawa's retaliatory measures. Reports suggest a deal could cut tariffs on Canadian-built vehicles to 15% from 25% and halve duties on steel and aluminum, though Ontario has pushed for their complete removal.

Domestically, Carney faces a tough sell. A recent poll shows 56% of Canadians want him to make no further concessions. He is also urging provinces to lift bans on US alcohol sales, a key irritant for Washington. Some provincial leaders, like Manitoba's Wab Kinew, have urged a tougher stance, arguing Canada holds the upper hand. However, Canada's economy is less than a tenth the size of the US, and it sends roughly 70% of its exports south, leaving it uniquely exposed to punitive trade actions.