United States Trade Representative Jamieson Greer says talks with Canada are ongoing, but Ottawa needs to drop its retaliatory tariffs as the two countries race to reach an agreement before another round of U.S. tariffs takes effect next week.

“The Canadians have come in and they want to have a conversation about it, and we’re having those conversations. I mean, again, this is a global trade policy,” Greer said in Des Moines Friday, where he was touring tire manufacturers.

“We have been suffering in the United States for decades under a trade policy that incentivizes offshoring to China, to Mexico, to Vietnam, but in some cases to Canada even, and we can’t allow that to happen anymore,” Greer said on Friday.

Canadian and U.S. officials have been engaged in intensive negotiations this week, with Canada-U.S. Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette were in Washington D.C. on Thursday for discussions with their American counterparts.

READ MORE: LeBlanc to remain in D.C. for trade talks, as dairy industry urges feds to not make any further concessions 

Greer noted the three gripes the U.S. had, which included Canada’s ban on American wine and spirits, what he described as “uneven” dairy treatment, and procurement rules.

“We have an uneven dairy treatment, in some instances, Canada gives the EU better treatment on dairy then they give us, their best customer,” Greer said.

Brian Clow, a former Canada-U.S. relations adviser to former prime minister Justin Trudeau, said the amount of time the American officials are now devoting to negotiations stands out after months in which talks were often sporadic.

“What’s really notable to me in the last three weeks is how much time the Americans are actually giving to the Canadians,” Clow told iPolitics. “That’s a real difference from what we saw basically the whole last 18 months.”

Clow said previous meetings could amount to a single hour before discussions stopped, sometimes for months.

“So the fact that the Americans are actually engaging is notable and interesting to me, and tells me they might actually come to a deal next week,” he said.

But Clow cautioned that neither side can be certain an agreement will be reached by the Aug. 19 deadline, especially given the number of politically sensitive issues still being discussed.

U.S. President Donald Trump has threatened to hit a number of Canadian goods with 50 per cent tariffs come Aug. 19. Unlike previous rounds, there would be no exemption for products deemed compliant under the Canada-United States-Mexico Agreement, or CUSMA.

At the same time, negotiations are expected to include efforts to reduce existing Section 232 tariffs affecting sectors including steel, aluminum and autos.

“It sounds like the Americans aren’t offering going to zero on the 232 tariffs. Far from it,” Clow said. “So it is going to be a real economic and political question that the prime minister will have to grapple with.”

Georganne Burke, senior vice-president of the Pathways Group and chapter lead for Republicans Overseas in Canada, said she believes any announcement next week is more likely to represent an initial step than a comprehensive settlement.

“I don’t know that this announcement that’s coming up on the 19th is going to be the final,” Burke said. “It’s going to be the first step towards something, is what I believe.”

Burke, who is a supporter of Trump and has been sharply critical of Ottawa’s approach to the dispute, argued the president has deliberately used the threat of substantially higher tariffs to gain leverage in the negotiations.

She said that after industries have faced the prospect of tariffs of 25, 35 or even 50 per cent, an agreement leaving some tariffs in the 10-to-15-per-cent range could now be presented as significant relief.

“If he came back with 10 or 15 per cent, they would go, ‘Oh my God, thank God. It’s not 25. It’s not 50,’” Burke said. “That’s exactly what I believe is going to happen.”

Clow also suggested Canadian governments may be preparing for the possibility that some U.S. tariffs remain in place.

He pointed to Ontario Premier Doug Ford’s comments Thursday, saying Ford didn’t insist that U.S. Section 232 tariffs must be eliminated entirely before Canada agrees to a deal.

“It does appear that the premiers are preparing themselves for a scenario where the 232s don’t go to zero,” Clow said.

Ultimately, he said, the reaction from affected Canadian industries could determine whether premiers such as Ford are prepared to accept a compromise.

“If the auto sector is briefed on the proposal and says we are okay with this and we want this, and if the steel sector says the same, then I expect Doug Ford will support the deal,” Clow said.