Concerns are rising among Canadian negotiators about the impending imposition of new U.S. tariffs on Wednesday, with uncertainties surrounding the ability to prevent them. Ottawa is facing challenges in securing relief from Washington on existing sectoral tariffs, alongside efforts to convince provinces to remove restrictions on American alcohol, sources revealed to CBC News.
Insiders from both Canada and the U.S., who have been closely involved in the negotiations, shared insights under confidentiality about the ongoing talks.
Negotiations are escalating, with Canadian Trade Minister Dominic LeBlanc engaging in discussions with U.S. Trade Representative Jamieson Greer for the third time in less than a week. The latest meeting on Sunday, conducted virtually, lasted approximately an hour.
Ottawa’s recent focus has been on striking a “comprehensive agreement” with the U.S. The aim is for the Trump administration to retract the upcoming 50% tariffs on nearly $28 billion worth of Canadian goods, making up about five percent of Canada’s exports to the U.S.
Central to this deal would be a resolution to lower the existing sectoral tariffs affecting industries such as steel, aluminum, auto, and lumber. Presently, steel and aluminum face 50% tariffs, while autos encounter tariffs of 25%.
In a statement in Des Moines, Iowa, United States Trade Representative Jamieson Greer addressed ongoing trade issues with Canada, emphasizing the importance of resolving disagreements. Greer clarified the U.S. position, indicating a willingness to engage in talks but asserting a stance against retaliatory actions.
Sources indicate that a comprehensive dual-track agreement is crucial to gaining provincial support for any deal. This includes a commitment to reintroduce American alcohol sales. Allegedly, the Trump administration has made the resumption of U.S. alcohol sales in Canada a non-negotiable aspect of the discussions.
However, the U.S. has not shown readiness to significantly reduce existing sectoral tariffs, leading to substantial gaps between the two countries on unresolved issues, as reported by CBC News on Friday.
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