As a critical deadline looms, the U.S. and Canada are in intense trade negotiations to avoid President Trump’s 50% tariffs on billions of dollars in imports. Trump expressed optimism, stating, “I think so. We’ll see,” while Canada continues efforts to “resolve outstanding trade issues.”
The outcome of these talks will determine if duties on goods like hockey sticks and wine take effect Saturday, impacting bilateral commerce significantly. The negotiations reportedly center on existing metal tariffs and agricultural access.
US-Canada Trade Deal on Brink: Trump Hints at Agreement as Tariff Deadline Looms
Washington D.C. - The United States and Canada are engaged in high-stakes trade negotiations as a critical deadline approaches for President Donald Trump's proposed 50% tariffs on a range of Canadian imports. With just hours remaining before the duties are set to take effect, President Trump expressed optimism about reaching a resolution, stating, "I think so. We'll see."
The looming tariffs, which would impact approximately $20 billion worth of Canadian goods including hockey sticks and wine, are scheduled to be implemented at 12:01 a.m. ET on Saturday. If no agreement is reached, these significant duties will be imposed, potentially disrupting bilateral trade.
President Trump, speaking before boarding Air Force One, emphasized the importance of supporting American farmers. "We have to take care of our farmers. Our farmers are very important to me," he said, adding, "The deal with Canada is moving along. We should be able to have a deal with Canada." This statement represents a slight shift from his previous assertion that a deal was finalized and merely awaiting documentation.
Canada has maintained its commitment to resolving outstanding trade issues. A spokesperson for Dominic LeBlanc, Canada's trade minister for the U.S., stated that "intensive discussions" are ongoing for the mutual benefit of both nations. LeBlanc and chief Canadian negotiator Janice Charette were actively engaged in talks with U.S. officials throughout Friday.
The 50% retaliatory tariffs were initially slated to begin Wednesday but were postponed for three days by President Trump to allow for finalization of a tentative agreement. Despite positive signals, trade officials from both sides had not announced a conclusive deal by late Friday.
"We're very close," LeBlanc had told reporters on Thursday. "We continue to make progress, and we're going to stay here and do the work that's necessary until we get to that point." He reiterated that Canadians expect a deal that serves their economic interests.
Key sticking points in the negotiations reportedly include existing U.S. tariffs on Canadian steel, aluminum, and lumber. Discussions may also involve potential tariff reductions on Canadian autos and the revival of the Keystone XL oil pipeline project. The Trump administration has also sought commitments from Canada to lower trade barriers for U.S. goods, particularly in sectors like dairy, where the U.S. alleges discriminatory practices by Canada.
Prime Minister Mark Carney expressed hope for an agreement on Wednesday via an X post, stating, "We are now moving towards an agreement that reinforces that Canadian advantage, including by securing the best terms in each of Canada's most important strategic sectors and providing greater certainty about our future trading relationship."
The tariffs were enacted under Section 338 of the Tariff Act of 1930, a rarely used provision allowing the president to impose duties in response to unfair trade practices.
Why Trump slapped 50% tariffs on Canada
Duration: 04:42
Category: Economy
