U.S. and Canadian negotiators meet for a third straight day in Washington on Friday, racing to finalize a trade deal before President Donald Trump's 50% tariffs on roughly $20 billion of Canadian goods take effect at 12:01 a.m. ET Saturday. Steel, aluminum, auto and lumber tariffs remain the central sticking points, while a new poll shows most Canadians want no further concessions.
Top trade negotiators from Canada and the United States are meeting for a third day running in Washington on Friday, trying to close a deal before new tariffs take effect. Canada-U.S. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette are set to meet U.S. Trade Representative Jamieson Greer at 11:30 a.m. ET at Greer's office, LeBlanc's office said.
Deadline set for Saturday
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. The duties were originally due Wednesday, but Trump postponed them for three days in a Truth Social post. LeBlanc met Greer for more than three hours on Thursday. According to CNBC, he told reporters: "We're very close", though he added more work remains before an agreement is reached.
Steel, autos and a pipeline on the table
Negotiators have stayed tight-lipped on the remaining sticking points, but Trump's existing tariffs on Canadian steel, aluminum and lumber are a central concern, the New York Times reported Thursday, citing people familiar with the talks. Sources told Reuters an agreement is expected to cut the top tariff on Canadian-built vehicles to 15% from 25% and halve tariffs on steel and aluminum to 25%. Trump has also suggested the deal could revive the Keystone XL pipeline from Alberta to Nebraska, which was scrapped in 2021.
Political pressure builds in Canada
Even if a deal is reached, Prime Minister Mark Carney could struggle to sell it at home. A Leger poll showed 56% of Canadians want Carney to make no further concessions. Carney is also pressing provinces to rescind their ban on U.S. alcohol sales, a step Washington views as a major irritant.
Manitoba Premier Wab Kinew argued Canada holds the upper hand and urged negotiators to keep pushing. Still, Canada sends around 70% of its exports south of the border, leaving it uniquely exposed as the clock ticks toward Saturday's deadline.
Sources: CNBC, Reuters via Investing.com
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