There are concerns among Canadian negotiators that it may not be possible to prevent new U.S. tariffs from being implemented on Wednesday. Ottawa is facing challenges in seeking relief from Washington on current sectoral tariffs while also working to convince provinces to lift restrictions on American alcohol, as per sources informed CBC News.
Multiple sources, both in Canada and the U.S., who have been briefed directly on the negotiations and granted confidentiality to discuss the talks openly, have revealed the ongoing situation.
The negotiations are escalating, with Canada-U.S. Trade Minister Dominic LeBlanc holding another meeting on Sunday with U.S. Trade Representative Jamieson Greer. The virtual meeting on Sunday, their third within a week, lasted approximately an hour.
In recent weeks, Ottawa’s objective has been to secure a “comprehensive agreement” with Washington. The aim is for the Trump administration to eliminate the new 50 per cent tariffs, scheduled to come into effect on Wednesday, affecting nearly $28 billion worth of Canadian goods, approximately five per cent of Canada’s exports to the U.S.
The core of the deal would involve an agreement for the Trump administration to reduce the existing sectoral tariffs that have been negatively impacting industries such as steel, aluminum, auto, and lumber. Presently, steel and aluminum face 50 per cent tariffs, while auto tariffs stand at 25 per cent.
During an event in Des Moines, Iowa, United States Trade Representative Jamieson Greer highlighted the numerous trade issues with Canada, emphasizing that any retaliatory actions will not be accepted by the U.S.
Sources indicate that securing a comprehensive deal addressing both aspects is crucial in gaining provincial support for any agreement, which includes a commitment to reintroduce American alcohol into the market. The Trump administration has made the reinstatement of U.S. alcohol sales in Canada a non-negotiable point in the talks.
However, the U.S. has not yet agreed to significantly lower the existing sectoral tariffs, and disagreements persist between the two countries on unresolved issues, as highlighted in a report by CBC News on Friday.
Several provinces are hesitant to lift their bans on American alcohol unless the U.S. offers relief on tariffs that impact their local industries. This stance is creating a dilemma for Ottawa, with sources revealing that some negotiators are now uncertain if a final deal can be reached if provincial opposition persists.</