US-Canada trade talks 'intense' as new tariff deadline looms

As a new tariff deadline approaches, U.S.-Canada trade discussions are described as "intense." Canada is working to prevent a new round of tariffs from the Trump administration, set to take effect in under 48 hours.

For the past week, Canadian negotiators have been in Washington, striving to finalize an agreement before new 50% tariffs on approximately $20 billion (C$28 billion) worth of Canadian imports are implemented on Wednesday.

When questioned by reporters on Monday, Prime Minister Mark Carney remained tight-lipped about the specifics of the talks. He stated that, given the "very delicate and intense" nature of the negotiations, it was "not the time to negotiate in public."

While Carney asserted that Canada was negotiating from "a position of strength," the stakes are considerable for him and his team to secure a deal before the Trump administration's latest financial pressure, affecting about 5% of all Canadian imports, takes hold.

Despite numerous meetings between Canadian negotiators and U.S. Trade Representative Jamieson Greer in recent days, a final agreement has yet to be reached.

"Our job is not yet done," said U.S.-Canada Trade Minister Dominic LeBlanc on Monday as he departed Greer's office.

Both sides have acknowledged the difficulty of the talks. Trump has characterized Canada as "nasty" on trade, a description of negotiations that Carney did not entirely dispute. Trump has also cautioned that "the time to get tougher" will come if the countries fail to reach an agreement.

Even if a deal is struck, Carney will need to persuade a public that is frustrated with and skeptical of the administration south of the border to accept any concessions made. He will also require the approval of the provinces for any compromises.

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. It has also asked for the lifting of the ban on U.S. alcohol sales, which most Canadian provinces imposed early last year in response to Trump's tariffs.

This alcohol concession would depend on the agreement of the provinces, as they control alcohol within their respective jurisdictions. Ontario Premier Doug Ford, known for his tough stance on the U.S., stated last week that an agreement on alcohol is conditional.

Canada has been seeking a deal that would result in the U.S. dropping or reducing tariffs on its steel, aluminum, automobile, and lumber sectors, all of which have negatively impacted 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 resistance regarding any concessions on dairy, particularly in Quebec, where Premier Christine Fréchette has declared that supply management is non-negotiable. Trump argues that this system, which includes production quotas, set pricing, and import quotas on dairy, eggs, and poultry, is "unreasonable" for American farmers who wish to sell their products north of the border.

Canadians are also disinclined to offer many concessions to the U.S., even as they desire more stability. A new poll from Abacus Data indicates that 74% believe the trade dispute has affected their household, and 36% want Canada to respond with new counter-tariffs, even if it risks further domestic economic hardship. Only 18% favor concessions, such as ending provincial bans on American alcohol, to remove or reduce U.S. tariffs.

Reports in Canadian media also suggested that Canada's chief negotiator, Janice Charette, warned her U.S. counterparts that the new tariffs could jeopardize further trade negotiations if they are enacted on Wednesday.

Carney has stated he would not sign a deal unless it is beneficial for Canada, though he has not specified what such a deal would entail. On Monday, he only said: "We'll have opportunities over the next 48 hours to discuss in more detail as the negotiations go forward." He mentioned plans to speak with Trump before the Wednesday deadline and also stated that he has "plans for any situation that may arise" should the talks fail.

Conservative trade critic Shuvaloy Majumdar issued a statement calling for "a measure of relief" from economic anxiety. "We have grown tired of seeing our country used as a punching bag," he said. "Yet we share a common hope that Prime Minister Carney will deliver a genuine win at the negotiating table."