Canada, US Resume Trade Talks as Tariff Deadline Looms

Canadian and American trade officials met in Ottawa on Wednesday, just days before a new tariff deadline, as both sides work to finalize an agreement that has so far eluded them. The meeting came after President Donald Trump agreed to pause threatened 50% tariffs on some Canadian goods for three days.

Dominic LeBlanc, Canada's minister responsible for US trade, and chief negotiator Janice Charette sat down with US Trade Representative Jamieson Greer, according to LeBlanc's office. The talks follow Trump's late Tuesday statement that a deal was in place pending document finalization, though Canadian Prime Minister Mark Carney struck a more cautious tone, acknowledging substantial progress but stressing that important work remains.

The new deadline is 12:01 a.m. ET Saturday, when tariffs on $20 billion worth of Canadian goods are set to take effect. Unlike previous measures, these tariffs would apply regardless of whether goods qualify for preferential treatment under the USMCA trade agreement.

Auto tariffs remain the most contentious issue. Automakers expect a final deal to significantly reduce the current 25% US tariff on Canadian vehicles and parts. Two auto executives said Canada is pushing for a 10% rate, while the US has offered 15% — the same level applied to goods from Japan, the European Union, and South Korea. UK goods currently face a 10% tariff.

Unresolved questions include whether the value of regional content from Mexico, the US, or Canada can be deducted from tariffs, or only US components. Negotiators also haven't settled whether reductions would apply to medium- and heavy-duty vehicles or just passenger cars and trucks. Canada wants all vehicles covered.

A White House proclamation indicated Canada had committed to removing what Washington considers discriminatory treatment of US alcoholic beverages, cheese, and motor vehicles. The Canadian government hasn't confirmed these commitments or disclosed its concessions. A Leger poll released Wednesday found 56% of Canadians want Carney to make no further concessions.

"This limbo state is not anyone's preferred outcome — time is of the essence," said Candace Laing, CEO of the Canadian Chamber of Commerce.

Greer said in a Tuesday night social media post that the agreement would include comprehensive market access for American goods, economic security commitments, and digital trade alignment, without providing specifics.

Trump also suggested the long-abandoned Keystone XL oil pipeline project "may be awoken from the grave," though he didn't clarify whether it's part of the current deal. Carney said in October that reviving the pipeline could strengthen US-Canada energy cooperation. The project was canceled by former President Joe Biden in 2021 after years of environmental and Indigenous opposition. South Bow, the TC Energy spinoff owning Keystone XL assets, declined to comment.

The tariffs were imposed under Section 338 of the Tariff Act of 1930 in response to Canadian policies on US alcohol, dairy, and automobiles.