The U.S. and Canada left another round of talks in Washington without a final trade deal, leaving Trump's 50% tariffs on roughly $20 billion of Canadian goods set to take effect early Saturday. Steel, aluminum and lumber duties remain the central sticking point, though Trump has floated lowering auto tariffs and reviving the Keystone XL pipeline as part of an agreement.
Trade officials from the United States and Canada wrapped up talks in Washington on Wednesday and Thursday without finalizing the deal meant to stop Trump's new tariffs on Canadian goods from taking effect. The tariffs were due to start Wednesday, but Trump postponed them for three days in a Truth Social post, saying an agreement was all but complete pending finalization of documents.
Deadline looms as talks continue
If no deal is reached by 12:01 a.m. ET on Saturday, the 50% tariffs on roughly $20 billion worth of Canadian imports will switch on. Businesses have warned the duties could cripple their sales, and the threat alone has already taken a toll.
Canada-U.S. Trade Minister Dominic LeBlanc told reporters Thursday afternoon: "We're very close." According to CNBC, LeBlanc said talks would continue until negotiators reach an agreement in Canada's economic interest. Canadian negotiator Janice Charette remained in talks with U.S. Trade Representative Jamieson Greer and other administration officials.
Metals tariffs are the sticking point
Negotiators have stayed tight-lipped about the remaining gaps, but Trump's existing tariffs on Canadian steel, aluminum and lumber are a central concern in the talks, the New York Times reported Thursday, citing people familiar with the matter. LeBlanc's office has declined to comment on how the metals tariffs factor into the negotiations.
Trump said Wednesday the U.S. might agree to lower those duties, and suggested lower tariffs on Canadian autos could also be part of the deal. He has also floated reviving Keystone XL, the Alberta-to-Nebraska pipeline that was scrapped in 2021.
No agreement has been announced as the Saturday deadline approaches.
Source: CNBC
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