Canada and the United States are still in disagreement as they negotiate a tariff deal while approaching the latest deadline set by U.S. President Donald Trump, sources say. The federal government does not foresee an imminent tariff agreement due to significant differences between the two parties on crucial issues that need resolution.
Canada’s Trade Minister, Dominic LeBlanc, updated provincial and territorial counterparts as well as members of the prime minister’s advisory committee on Canada-U.S. economic relations about the ongoing negotiations. Despite optimism initially, there is a growing sense of pessimism on the Canadian side as they believe the U.S. is unwilling to adjust their latest offer, particularly regarding halving sectoral tariffs on autos to 12.5 per cent.
Quebec’s Economy Minister Bernard Drainville, briefed by LeBlanc, emphasized the considerable gap that persists between the two countries. Erin O’Toole, a former Conservative leader and advisor, echoed this sentiment, stating that the positions of Canada and the U.S. remain distant.
The federal government has instructed provinces to prepare for the reintroduction of American alcohol on shelves in the event of a tariff agreement. Additionally, provinces and territories are asked to be ready to remove retaliatory procurement rules favoring Canadian suppliers if a deal is reached.
Trade talks have intensified following Trump’s threat of imposing a 50 per cent tariff on numerous Canadian goods. The proposed deal under discussion includes the U.S. refraining from new levies while reducing existing sectoral tariffs on Canadian steel, aluminum, autos, and forest products. In return, Canada would need to address complaints related to provincial booze bans, dairy import quotas, and auto tariffs.
Prime Minister Mark Carney aims to negotiate a deal that addresses existing levies and the recent threat of new tariffs. U.S. Trade Representative Jamieson Greer has described the talks as “constructive,” but emphasized the U.S.’s focus on executing President Trump’s trade policies.
The booze bans imposed by Canada in response to Trump’s tariff threats have severely impacted U.S. alcohol exports to Canada, leading to a significant decline in sales. Ontario Premier Doug Ford expressed willingness to reintroduce U.S. alcohol if a fair deal is reached, emphasizing that tariffs on Canada ultimately affect the American people.
Even if American alcohol becomes available again, many Canadians have expressed reluctance to purchase it.