Canada’s Trade Minister Dominic LeBlanc and the U.S. Trade Representative are working on a joint proposal to present to President Donald Trump before his upcoming tariff deadline. The aim is to offer a potential trade deal to Trump at least a day before the deadline, allowing him time to make a final decision before new tariffs on Canadian imports take effect on August 19.
LeBlanc and the U.S. Trade Representative recently met in Washington for the third time in three weeks. They are seeking to prevent new tariffs and address existing sectoral tariffs on Canadian steel, aluminum, lumber, and autos. Additionally, Canada hopes for an extension of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration opted not to renew the deal in July.
Conservative MPs in Canada are urging the government to secure a strong trade position with the U.S. Conservative MP Michelle Rempel Garner emphasized the need for Canada to negotiate from a position of strength and called on Prime Minister Mark Carney to deliver on trade promises. Conservative Leader Pierre Poilievre also urged Carney to prioritize zero tariffs on softwood lumber, the removal of sectoral tariffs on steel and aluminum, a tariff-free auto pact, and full exemption from Buy America rules on infrastructure projects.
The proposed trade deal aims to address trade issues between the two countries, including Canadian retaliatory measures against U.S. trade policies, which have impacted exports of alcohol and other goods. The new tariffs would affect about five percent of Canadian exports to the U.S., covering a range of products from alcohol to sports equipment.