Concerns are rising among Canadian negotiators about the impending imposition of new U.S. tariffs scheduled for Wednesday. Ottawa is facing challenges in securing relief from existing sectoral tariffs from Washington while also working to convince provinces to remove restrictions on American alcohol, sources familiar with the negotiations informed CBC News.
Multiple sources from both Canada and the U.S. have been briefed on the ongoing negotiations and have been granted confidentiality to discuss the talks candidly.
Negotiations are escalating, with Canada’s Trade Minister Dominic LeBlanc engaging in another meeting on Sunday with U.S. Trade Representative Jamieson Greer. The virtual meeting, their third in less than a week, lasted approximately an hour.
Ottawa’s recent focus has been on striking a “comprehensive agreement” with Washington. The primary objective for Ottawa is to persuade the Trump administration to withdraw the impending 50 per cent tariffs, targeting nearly $28 billion worth of Canadian goods, which accounts for about five per cent of Canada’s exports to the U.S.
Central to this agreement would be a provision for the Trump administration to reduce the existing sectoral tariffs affecting 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 a speech in Des Moines, Iowa, U.S. Trade Representative Jamieson Greer acknowledged numerous trade challenges with Canada. Greer emphasized that the current situation is not a trade war from the U.S. perspective but warned against retaliatory actions.
Sources indicate that a comprehensive dual-agreement approach is crucial to gaining provincial support for any deal, including a commitment to reintroduce American alcohol sales. The Trump administration has made the resumption of U.S. alcohol sales in Canada a non-negotiable aspect of the discussions.
However, the U.S. has shown reluctance to significantly reduce existing sectoral tariffs, and differences between the two countries on critical unresolved matters persist, as highlighted in a report by CBC News on Friday.
Some provinces are