Canada-US Trade Talks Stall Amid Tariff Deadline Looming

Canada and the US are racing against the clock to reach a trade deal before midnight, when sweeping tariffs on billions of dollars' worth of goods could take effect. The tariffs, which were originally set to go into effect on Wednesday, have been delayed for three days at the request of US President Donald Trump. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette met with US Trade Representative Jamieson Greer in Washington, D.C. on Friday, accompanied by a delegation of Canadian trade officials.

LeBlanc said the two sides are 'very close' to reaching an agreement, but refused to give details. A source with direct knowledge of the talks revealed that the US could cut steel and aluminum tariffs from 50% to 25%, as well as auto tariffs from 25% to 15%. Tariff relief for Canada's softwood lumber industry is also reportedly being discussed.

However, some Canadian officials are skeptical about the deal. Conservative Leader Pierre Poilievre warned that sectoral tariffs on steel, aluminum, automobiles, and lumber would be 'unacceptable', and could lead to the de-industrialization of Canada's economy. Premier Wab Kinew of Manitoba expressed similar concerns, saying he was 'skeptical' of a good faith trade deal with Trump.

Prime Minister Mark Carney has asked premiers to put US alcohol back on their shelves in order to help progress the deal. Nova Scotia Premier Tim Houston said this request came directly from the negotiating table, and that his province would be willing to do so pending a final agreement.