Canada’s Trade Minister Dominic LeBlanc and his U.S. counterpart are working on presenting a potential trade deal to U.S. President Donald Trump by Monday. Sources familiar with the situation revealed that the goal is to offer a joint proposal to Trump a day before his upcoming tariff deadline. This timeline would allow Trump to make a final decision before imposing new 50% tariffs on numerous Canadian imports on August 19.
LeBlanc recently met with U.S. Trade Representative Jamieson Greer in Washington for the third time in three weeks. Following the meeting, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, answered reporters’ questions. LeBlanc later indicated that discussions are ongoing, emphasizing their commitment to negotiations.
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. Furthermore, Canada hopes that ongoing trade discussions will lead to an extension of the Canada-U.S.-Mexico Agreement (CUSMA), following the Trump administration’s decision not to renew the deal in July.
The U.S. recently highlighted various trade issues, including Canada’s response to U.S. trade policies, such as removing U.S. alcohol from provincial stores and alleged discrimination against U.S. motor vehicles and dairy products. These issues have led to a decline in wine and spirit exports to Canada.
The proposed tariffs will impact approximately five percent of Canadian exports to the U.S., covering a range of goods from alcohol to sports equipment to construction materials. Meanwhile, Conservative MPs are urging the Canadian government to negotiate from a strong position, emphasizing the need for favorable trade agreements, including zero tariffs on softwood lumber and the removal of sectoral tariffs on steel and aluminum.
Conservative Leader Pierre Poilievre has called on the government to prioritize Canadian interests in trade negotiations and secure beneficial deals for the country, urging against policies that could hinder economic growth.