Top U.S. and Canadian trade negotiators met for a third straight day in Washington on Friday, working to finalize a deal before a threatened 50% U.S. tariff on Canadian goods takes effect Saturday. Trump says he expects an agreement, but a new poll shows most Canadians want Prime Minister Mark Carney to hold the line.
Top trade negotiators from Canada and the United States met for a third consecutive day in Washington on Friday, working to finalize a deal before threatened new U.S. tariffs take effect. Trump says he will impose a new 50% tariff on about $20 billion worth of Canadian goods at 12:01 a.m. EDT on Saturday if no deal is reached.
Trump signals optimism, no details given
As talks continued Friday afternoon, Trump said he expected the two countries to reach an agreement, though he provided no details. He also said the United States was starting work toward a trade deal with Mexico. Canada's minister responsible for trade with the U.S., Dominic LeBlanc, did not speak to reporters as he arrived for the talks.
LeBlanc met U.S. Trade Representative Greer for more than three hours on Thursday and said the two sides remained close to a deal, though more work was still needed.
Autos, steel and aluminum tariffs seen easing
Sources say the emerging deal would cut the tariff on Canadian-built vehicles to 15% from 25% and halve the tariff on Canadian steel and aluminum to 25%. Ontario, a major steel and aluminum producer, wants those tariffs scrapped. Carney is also calling on major provinces to rescind their ban on U.S. alcohol sales, which is a major irritant for Washington.
A hard sell at home for Carney
A deal could mark a detente in what has been 18 months of tense relations, which started when Trump imposed tariffs on key Canadian imports and Ottawa retaliated with a suite of countermeasures. Even if an agreement is reached, however, Carney could find it hard to sell it to Canadians and the influential premiers of the country's ten provinces.
A Leger opinion poll published Wednesday showed 56% of Canadians want Carney to make no further concessions. Manitoba premier Wab Kinew said on Thursday that Trump was "very weak" and that Canada should take advantage of the moment. Yet Canada's economy is less than a tenth the size of the U.S. economy and sends around 70% of all its exports south of the border, leaving it exposed to U.S. trade pressure.
U.S. Vice President JD Vance mocked Carney on Wednesday at a fundraiser in Southampton, New York, saying the Canadian leader postures as tougher than Trump while ultimately conceding ground on multiple issues. Talks between the two delegations were still underway Friday afternoon, hours ahead of the tariff deadline.
Source: Commodities & Futures News
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