Canada and US say they are finalising a trade deal, but details remain murky

Canada and the United States have announced they are nearing completion of a trade agreement, though specific details remain undisclosed. Both President Donald Trump and Prime Minister Mark Carney have hailed the impending deal as a triumph.

Trump indicated that the proposed agreement would be well-received by American farmers and manufacturers. Concurrently, Carney stated that it would secure "the best terms" for Canada's key strategic industries and offer stability regarding the future of trade between the two nations.

Trade negotiators convened for the third consecutive day on Wednesday, following Trump's decision to temporarily halt a new round of tariffs he had threatened to impose overnight on various Canadian goods. However, the precise scope of the agreement, the concessions made by each party, and any outstanding issues are still unclear.

Following a 45-minute meeting with his Canadian counterpart on Wednesday, U.S. Trade Representative Jamieson Greer briefly informed reporters that the American side was "very happy" with the recent discussions. He added that he would soon brief Congress and U.S. stakeholders on the specifics of the deal.

Greer expressed confidence, stating, "We feel confident that we've reached an agreement that will not only continue to protect American workers, American jobs, American supply chains, but really strengthen the North American economy." He also noted that the agreement addresses "some of the irritants" the U.S. had with Canada.

Trump confirmed that Canada has consented to eliminate tariffs on U.S. agricultural products, though he did not specify which particular sectors would benefit. When questioned about potential U.S. tariff reductions on Canadian goods, Trump responded, "a little bit."

On X, Carney extended congratulations to Greer and Canada-U.S. Trade Minister Dominic LeBlanc for the "significant progress" achieved in the negotiations. Carney wrote on Wednesday, "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."

LeBlanc and his team have been in Washington for over a week, working to finalize a deal before a new wave of 50% tariffs, which the Trump administration had planned to implement on Wednesday, took effect. These tariffs have now been postponed until the weekend.

Canada has been seeking an agreement that would lead to the U.S. dropping or reducing tariffs on its steel, aluminum, automobiles, and lumber. Meanwhile, the U.S. has requested several concessions from Canada, including the removal of its remaining retaliatory tariffs on American automobiles and adjustments to its dairy quotas to allow greater access for U.S. cheese producers. The U.S. has also called for the lifting of the ban on U.S. alcohol sales, which most Canadian provinces imposed last year in response to Trump's tariffs.

When asked on Wednesday if the latest deal would include significant concessions on dairy, Minister LeBlanc affirmed that Canada's dairy supply management program—which involves production quotas, set pricing, and import quotas on dairy, eggs, and poultry—would remain "entirely intact."

Polls indicate that a majority of Canadians would disapprove if the Carney government made substantial concessions to the U.S., with 56% of respondents surveyed by polling firm Leger stating they favor a hardline approach from Canada. However, business organizations from both sides of the border have urged for a deal, warning that additional tariffs between the two major trading partners would be detrimental to both countries.