Canada-U.S. Trade Talks Stall as Deadline Looms for Tariffs

Canada and the U.S. remain far apart in trade negotiations as a deadline looms for imposing tariffs on Canadian goods, according to sources. The federal government does not believe a tariff deal is imminent because of major disagreements between the two sides.

Trade Minister Dominic LeBlanc briefed provincial and territorial counterparts on the state of the talks on Friday, but there's still no agreement in sight. Quebec's Economy Minister Bernard Drainville said, 'There is still no agreement; in fact, they are quite far from reaching one.'

The U.S. has threatened to impose a 50% tariff on hundreds of Canadian goods starting August 19, which would add to existing sectoral tariffs. The current deal under discussion would see the U.S. refrain from imposing those new levies and lower, but not fully eliminate, sectoral tariffs already in place.

However, Canada has concerns about concessions on supply management and dairy access, with Quebec Premier Christine Fréchette saying, 'There is a great deal at stake in the current negotiations; that is undeniable.' She added, 'For us, it is essential to preserve supply management.'