Canada’s Trade Minister, Dominic LeBlanc, and his American counterpart are working on presenting a potential trade deal to U.S. President Donald Trump by Monday, according to sources familiar with the matter. The goal is to deliver a joint proposal to Trump ahead of the looming tariff deadline, providing him with time to make a final decision before new 50% tariffs on numerous Canadian imports are set to come into effect on August 19.
LeBlanc recently met with U.S. Trade Representative Jamieson Greer in Washington, marking their third in-person meeting in three weeks. Following the meeting, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, responded to reporters’ inquiries. LeBlanc later mentioned on social media that discussions are ongoing and that they will continue engaging in negotiations.
In addition to discouraging new tariffs, LeBlanc and Charette are seeking relief from sectoral tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles. Canada is also hopeful that ongoing trade discussions will lead to an extension of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration opted not to renew the deal in July.
The U.S. recently announced the upcoming tariffs, citing various trade issues, including Canada’s response to U.S. trade policies and alleged discrimination against U.S. alcohol, vehicles, and dairy products. The new tariffs would affect approximately 5% of Canadian exports to the U.S., targeting goods such as alcohol, hockey sticks, and cement.
Conservative politicians in Canada are urging for stronger negotiation tactics with the U.S. government. Conservative MP Michelle Rempel Garner emphasized the need for Canada to be in a robust negotiating position, particularly criticizing Prime Minister Mark Carney for not securing a trade agreement with the U.S. administration despite being in office for over a year. Conservative Leader Pierre Poilievre also called on Carney to exhibit more assertiveness in trade talks, advocating for a deal that includes zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto agreement, and exemptions from Buy America regulations on government infrastructure projects.
The efforts to finalize a trade deal between Canada and the U.S. are crucial as both countries navigate the complexities of their economic relationship.