U.S., Canadian negotiators meet as deadline for new tariffs looms
Aug. 21 (UPI) — President Donald Trump‘s threatened 50% tariffs on $20 billion worth of Canadian goods hung in the balance Friday as U.S. and Canadian negotiators met in Washington with a midnight deadline looming.
Canadian Minister for Internal Trade Dominic LeBlanc, his country’s lead negotiator, arrived at the offices of U.S. Trade Representative Jamieson Greer shortly after noon as the two sides met to strike a deal ahead of Trump’s 12:01 a.m. Saturday deadline, the CBC reported.
The U.S. president signed orders in July to impose 50% tariffs on Canadian goods, including cement, hockey sticks and many other items, representing about 2% of the entire trade between the United States and Canada.
The tariffs were to go into effect at 12:01 a.m. Wednesday, but were delayed through the end of Friday by an announcement on social media issued about 90 minutes before the deadline in which Trump said the two sides “have a DEAL!” with final implementation to come.
Canadian Prime Minister Mark Carney, however, was much more cautious, saying only that “substantial progress has been made, although there is important work still to be done.”
Details of the touted agreement have been scarce. However, Trump teased the possibility that it could reinstate work on the abandoned proposed Keystone XL oil pipeline from Alberta, which was dropped by then-President Joe Biden in 2021 over climate concerns.
The U.S. president also intimated that U.S. tariffs on Canadian autos could be part of the deal, which Greer suggested that the United States could adjust its current tariffs on Canadian steel and aluminum.
Canadian negotiators, meanwhile, want to ease the tariffs already imposed on Canadian industries, including duties of up to 50% on steel, aluminum and autos. Some tariffs also affect Canadian softwood lumber.
On Wednesday, after Trump extended the deadline, Carney urged a “Team Canada” approach during a virtual meeting with provincial and territorial premiers as some of them have toed a hard line in refusing to stock American alcohol products, which is seen as a main irritant to the Trump administration.
Manitoba Premier Wab Kinew on Thursday told reporters if a new deal allows a return of U.S. beer and spirits to Canadian shelves, local consumers should “leave it there.
“Don’t buy it. Let it sit on the shelf … and buy the Canadian stuff instead,” he said.
Carney on Wednesday emphasized “continued collaboration with provincial and territorial governments as the federal government works to finalize a deal with the United States,” according to an official readout of the meeting.
He reiterated the government’s goal is to “secure the best deal for Canadians — one that provides the greatest possible U.S. market access for Canadian businesses,” and emphasized “the importance of remaining focused on Canada’s central economic strategy: building our economic strength at home and diversifying our partners abroad.”
