Canada and US Still Far Apart on Trade Deal Ahead of Tariff Deadline
Canadian minister Dominic LeBlanc says talks with the US are far from a draft agreement, with new 50% tariffs on Canadian goods looming.
Canada and the United States remain significantly divided in their trade negotiations, according to Dominic LeBlanc, the Canadian minister overseeing trade relations with the US. Speaking to an advisory committee on Friday, LeBlanc indicated that a draft agreement is not yet within reach, despite ongoing discussions.
LeBlanc is currently in Washington with his chief trade negotiator and a team of officials, working against the clock as an August 19 deadline approaches. That date marks the planned start of new 50% tariffs on Canadian goods by the Trump administration.
The minister has intensified his engagement with US Trade Representative Jamieson Greer, holding four meetings in the past three weeks. His office has confirmed he will remain in Washington over the weekend to continue the talks.
The proposed tariffs would impact nearly $20 billion worth of Canadian exports, representing about 5.2% of Canada's shipments to the US. Unlike earlier tariffs, these new duties would apply to products that currently qualify for preferential treatment under the US-Mexico-Canada Agreement, adding a fresh layer of risk to Canada's economy.
A source briefed on the advisory committee meeting said LeBlanc described the two sides as "quite far away" from an agreement that Prime Minister Justin Trudeau could approve. The source noted that in such complex negotiations, "nothing is agreed until everything is agreed."
While technical-level meetings are happening constantly, key issues remain unresolved. The US is pressing for changes to Canadian tariffs on American autos, adjustments to dairy quota allocations, and greater market access for US alcohol in Canadian provinces. Canada, in turn, is seeking reductions in US tariffs on its steel and aluminum exports.
Candace Laing, CEO of the Canadian Chamber of Commerce and a committee member, said both sides are working toward an interim agreement that could address both existing tariffs and the looming 50% duties. Multiple meetings are scheduled over the weekend.
LeBlanc also briefed Canada's provincial and territorial trade ministers on Friday regarding the state of negotiations. A spokesperson for LeBlanc declined to comment on the details of the discussions.