"Intense" trade talks are going down to the wire as Canada seeks to avoid a fresh round of tariffs from the Trump administration due to come into effect in less than 48 hours. Canadian negotiators have been camped out in Washington for a week, trying to pin down some agreement before new 50% tariffs on some $20bn (C$28bn) worth of Canadian imports come into effect on Wednesday. Prime Minister Mark Carney kept details of the talks close to his chest when pressed by reporters on Monday, saying that given the "very delicate and intense" negotiations, it is "not the time to negotiate in public".
While he said Canada was negotiating from "a position of strength", the stakes are high for the prime minister and his team to reach a deal before the Trump administration's latest financial squeeze, on about 5% of all Canadian imports, takes hold. Despite a flurry of meetings between Canadian negotiators and US Trade Representative Jamieson Greer in recent days, the two sides have yet to reach a final agreement. "Our job is not yet done," US-Canada Trade Minister Dominic LeBlanc said on Monday as he left Greer's office.
Both sides have been clear the talks have been tough. Trump has described Canada as "nasty" on trade - a characterisation of negotiations that Carney did not entirely dispute., external He has also warned that "the time to get tougher" will be if the countries fail to reach a deal. Even if one is reached, Carney will need to sell any concessions made to a public frustrated with - and skeptical of - the administration south of the border.
He will also need the buy-in from the provinces on any compromises. The US has been asking for a number of concessions from Canada, including removing its remaining retaliatory tariffs on American autos and adjusting its dairy quotas. It has also asked for the ban on US alcohol sales, imposed early last year by most Canadian provinces in retaliation for Trump's tariffs, be removed.
Canada's 'powerful' dairy sector is in Trump's trade crosshairs Many Canadians are boycotting the US, so this is where they're travelling instead Canada's Carney under pressure to fight back against Trump tariffs That concession would depend on the agreement of the provinces, which are in control of the alcohol in their respective jurisdictions. Ontario Premier Doug Ford, who makes a point of being tough on the US, said last week that an agreement on booze is conditional. Canada has been in pursuit of a deal that would see the US drop or reduce tariffs on its steel, aluminium, automobile and lumber sectors, all of which have been damaging to the country's economy.
"If we get a fair deal that will protect our steel sector, our auto sector, our forestry sector, our agriculture sector, our manufacturing sector, then we'd be happy to bring booze back on the shelves," Ford said. Carney could also face pushback on any concessions on dairy, especially in Quebec, where the premier, Christine Fréchette, has said supply management is non-negotiable. Trump argues the system, which has production quotas, set pricing, and import quotas on dairy, eggs, and poultry, is "unreasonable" to American farmers who want to sell their products north of the border.
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