The United States and Canada remain without a final trade deal with less than 11 hours left before 50% tariffs on roughly $20 billion of Canadian imports are set to take effect. Negotiators met again in Washington on Friday, but Canada says outstanding trade issues still need to be resolved before the deadline.
Trade officials from both countries pushed talks into Friday as the clock ran down on President Donald Trump's threatened tariffs on Canadian hockey sticks, wine and other goods. Canada's trade minister for the U.S., Dominic LeBlanc, said through a spokesperson that intensive discussions were continuing for the mutual benefit of both countries.
Hours until the deadline
If no deal is reached by 12:01 a.m. ET Saturday, the 50% tariffs on about $20 billion worth of Canadian imports switch on. The duties were initially due to start Wednesday, but Trump postponed them for three days in a Truth Social post so officials could finish a tentative agreement. Trade officials nonetheless emerged from talks in Washington on Wednesday and Thursday without a final deal.
LeBlanc told reporters Thursday, according to CNBC: "We're very close." LeBlanc and chief Canadian negotiator Janice Charette met U.S. Trade Representative Jamieson Greer at his Washington office Friday, and Greer was later seen leaving the building before LeBlanc departed as well, though LeBlanc said he would return shortly.
Steel, aluminum and a possible pipeline revival
Negotiators have stayed tight-lipped on the remaining sticking points, but existing U.S. tariffs on Canadian steel, aluminum and lumber are a central concern, the New York Times reported Thursday, citing people familiar with the talks. Trump said Wednesday that the U.S. might lower those duties, and suggested lower tariffs on Canadian autos could also be part of the deal.
Trump has also floated reviving Keystone XL, the Alberta-to-Nebraska oil pipeline project scrapped in 2021. The looming tariffs were invoked last month under Section 338 of the Tariff Act of 1930, a Great Depression-era law that lets the president impose duties over allegations of discrimination against U.S. commerce and that has rarely been used in decades. The administration has said Canada committed to lowering trade barriers on the U.S. without offering specifics, and Trump said Wednesday that Canadian tariffs on U.S. farmers would disappear entirely, a threat partly based on the administration's allegation that Canada discriminates against the U.S. dairy industry, which Canada has not confirmed.
Prime Minister Mark Carney wrote on X Wednesday that the two countries are moving toward an agreement that would secure strong terms for Canada's key sectors and provide greater certainty for future trade.
Source: CNBC
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