Concerns are growing among Canadian negotiators about the impending imposition of new U.S. tariffs set to take effect on Wednesday. Ottawa is facing challenges in seeking relief from existing sectoral tariffs from Washington while also working to persuade provinces to lift restrictions on American alcohol, sources informed CBC News.
Multiple sources, both in Canada and the U.S., who have been briefed on the negotiations and granted confidentiality to discuss the talks candidly, have revealed the ongoing intensification of negotiations. Radio-Canada has reported that Dominic LeBlanc, the Canada-U.S. Trade Minister, is scheduled to meet with his U.S. counterpart, Trade Representative Jamieson Greer, for the third time in a week on Sunday.
In recent weeks, Ottawa has been aiming to reach a “comprehensive agreement” with Washington. The primary objective for Ottawa is to persuade the Trump administration to withdraw the new 50 per cent tariffs, slated to be enforced on nearly $28 billion worth of Canadian goods on Wednesday, representing around five per cent of Canada’s exports to the U.S.
Central to this agreement would be the reduction of existing sectoral tariffs that have been impacting industries such as steel, aluminum, auto, and lumber. Presently, steel and aluminum face 50 per cent tariffs, while autos are subjected to 25 per cent tariffs.
Speaking in Des Moines, Iowa, United States Trade Representative Jamieson Greer said there are ‘a lot of issues’ with Canada, after being asked by a CBC reporter if there were particular areas the two countries couldn’t find agreement on. Greer said that for the U.S., the current situation ‘is not a trade war,’ but if a country retaliates, ‘we’re obviously not going to tolerate that.’
Sources indicate that achieving a comprehensive deal involving both aspects is crucial to gaining provincial support for any agreement, including a commitment to reintroduce American alcohol into the Canadian market. The Trump administration has made the resumption of U.S. alcohol sales in Canada a non-negotiable point in the discussions.
However, the U.S. has not shown willingness to significantly reduce existing sectoral tariffs, leading to significant gaps between the two countries on unresolved issues, as highlighted in a recent CBC News report.
Several provinces are standing firm on maintaining their bans on American alcohol until relief is provided on tariffs affecting their respective industries, creating a dilemma for Ottawa. Negotiators are concerned that finalizing a deal could be jeopardized if
