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As the clock ticks toward U.S. President Donald Trump’s latest tariff deadline, Canada and the U.S. aren’t at a point where a tariff deal can be reached — and Canadian officials are not satisfied with the latest U.S. offer, according to two sources with knowledge of the trade talks.
According to sources on both sides of the border, the Americans offered a new proposal on Tuesday which would lower some of the sectoral tariffs but not to the degree that the Canadian side would like to see. CBC News is not naming the sources because they were not authorized to speak publicly.
Negotiators have been going back and forth in recent weeks in an effort to reach some sort of deal before Aug. 19, which is when Trump has promised a 50 per cent levy on hundreds of Canadian goods in addition to the sectoral tariffs already in place.
The Americans are seeking a deal that would see preferential access to Canadian critical minerals and cover security and energy, the sources said.
Canada-U.S. Trade Minister Dominic LeBlanc has been in Washington to meet with U.S. Trade Representative Jamieson Greer three times in as many weeks. CBC News previously reported that the two are aiming to present Trump with a path to a potential trade deal as early as Monday.
CBC News has learned Canada-U.S. Trade Minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer are working on a proposal to pitch to U.S. President Donald Trump before a tariff deadline that could see hundreds of Canadian goods hit with a 50 per cent levy.
Neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, answered reporters’ questions after they were seen leaving Greer’s office on Tuesday afternoon.
LeBlanc later posted to X saying that discussions are “ongoing” and he and Charette will “continue to engage at the negotiation table.”
In addition to trying to dissuade Americans from levying new tariffs, LeBlanc and Charette are looking for relief on tariffs the U.S. has slapped on Canadian steel, aluminum, lumber and autos.
Canada is also hoping the ongoing trade talks between the two countries will result in a renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration last month declined to extend the deal past 2036.
When announcing the Aug. 19 tariffs, the U.S. raised a number of trade irritants, including Canada’s retaliation against U.S. trade policy with the removal of U.S. alcohol from provincial store shelves and alleged Canadian discrimination against U.S. motor vehicles and dairy.
Conservative Leader Pierre Poilievre wrote to Carney on Sunday, calling on him to show some “backbone” as trade negotiations ramp up.
Poilievre said Canadians deserve a “good deal” that includes zero tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact and full exemption to Buy America rules on infrastructure projects at all levels of government.
“No more pursuing policies of a managed decline at home. No more caving,” Poilievre wrote.
Industry sources previously told CBC News that Canada is preparing to meet some U.S. demands — including ending the booze bans — in exchange for tariff relief.
