Trump Tariffs Loom Over Canada Amid Ongoing Trade Talks

Canada is facing a looming deadline as US President Donald Trump's 50% tariffs are set to hit Canadian goods within hours, amidst ongoing trade talks between Ottawa and Washington. The tariff deadline, which expires at midnight on Tuesday, has added uncertainty for the Canadian economy and threatens significant consequences for affected industries and regions, according to Royal Bank of Canada economists Abbey Xu and Nathan Janzen.

The Canadian government is seeking a comprehensive deal with the US that benefits businesses, workers, farmers, and families on both sides of the border. However, officials told Global News on Friday that Ottawa and Washington are 'not close to signing a trade deal' and a 'big gap' remains between the two sides.

One major sticking point in the talks is relief for Canada's softwood lumber industry, with US officials showing little interest in reducing tariffs, which currently sit at around 45%. The issue has been a contentious one in the negotiations, with Canadian officials hoping to secure a better deal before the tariff deadline expires.

Prime Minister Mark Carney and Trump spoke by phone about the ongoing negotiations, but details of the discussion have not been disclosed. Canada-US Trade Minister Dominic LeBlanc and chief negotiator Janice Charette are leading Ottawa's efforts in Washington, D.C., where they met with US Trade Representative Jamieson Greer and US Commerce Secretary Howard Lutnick on Monday afternoon.