Canada’s Trade Minister Dominic LeBlanc and his American counterpart are working towards presenting a potential trade deal to U.S. President Donald Trump as early as Monday, according to sources familiar with the matter. The aim is to have the joint proposal ready for Trump to review at least a day before the upcoming tariff deadline.
LeBlanc recently met with U.S. Trade Representative Jamieson Greer in Washington for the third time in three weeks. Following the meeting, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, provided comments to reporters. LeBlanc later confirmed that discussions are ongoing and that they will continue engaging at the negotiation table.
In addition to preventing new tariffs on Canadian imports, LeBlanc and Charette are seeking relief from sectoral tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and autos. Canada is also hopeful for an extension of the Canada-U.S.-Mexico Agreement (CUSMA) following the Trump administration’s decision not to renew the deal in July.
Concerns have been raised about the impact of retaliatory measures on trade relations between the two countries. Notably, the U.S. cited trade irritants such as Canada’s actions against U.S. trade policy, including the removal of U.S. alcohol from provincial store shelves and alleged discrimination against U.S. motor vehicles and dairy products.
The new tariffs set to take effect on August 19 cover approximately five percent of Canadian exports to the U.S., affecting a range of goods from alcohol to hockey sticks to cement. This move follows a decline in wine and spirit exports to Canada due to alcohol bans in most provinces.
Conservative MPs have called on the Canadian government to prioritize securing a favorable trade deal with the U.S. Conservative MP Michelle Rempel Garner emphasized the importance of Canada being in a strong negotiating position, urging Prime Minister Mark Carney to deliver on his promise to Canadians. Conservative Leader Pierre Poilievre has also urged Carney to prioritize zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact, and full exemption from Buy America rules.
The aim is to secure a mutually beneficial trade agreement that addresses key concerns on both sides of the border.