Canada’s Minister of Trade, Dominic LeBlanc, and the U.S. Trade Representative are collaborating to present a potential trade deal to U.S. President Donald Trump by Monday, as per sources briefed on the matter. The aim is to provide Trump with the proposal before the looming tariff deadline to allow ample time for a final decision before new 50% levies on numerous Canadian imports are set to come into effect on August 19.
The sources, who remain unnamed as they were not authorized to speak publicly, revealed that efforts are being made to extend the Canada-U.S.-Mexico Agreement. LeBlanc and U.S. Trade Representative Jamieson Greer held a meeting in Washington, marking their third face-to-face encounter in three weeks. Following their meeting, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, addressed reporters’ inquiries. LeBlanc later confirmed ongoing discussions through a social media post.
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 hopeful that the ongoing trade discussions will lead to an extension of the Canada-U.S.-Mexico Agreement, after the Trump administration chose not to renew the deal in July.
Regarding the U.S.’s announcement of impending tariffs, several trade issues were raised, including Canada’s response to U.S. trade policies affecting the availability of U.S. alcohol in Canadian stores and alleged discrimination against U.S. motor vehicles and dairy products. The new tariffs are expected to impact approximately 5% of Canadian exports to the U.S., covering a range of goods from alcohol to sports equipment to building materials.
Conservative MP Michelle Rempel Garner emphasized the importance of Canada ensuring a strong negotiating position with the White House. She urged for accountability from Prime Minister Mark Carney, stating that despite being in office for over a year, Carney has yet to secure a trade agreement with the Trump administration. Conservative Leader Pierre Poilievre also called on Carney to demonstrate assertiveness in the ongoing trade negotiations, advocating for favorable terms such as zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact, and exemptions to Buy America rules on infrastructure projects at all government levels.