US and Canada near trade pact as deadline looms

United States and Canada are in the final stages of a trade agreement that could prevent the imposition of fresh 50 percent duties on a range of Canadian products. The talks, which have stretched into late evenings at the office of Jamieson Greer, the US Trade Representative, have seen both sides claim “major progress” after days of intensive negotiations.

Canadian trade minister LeBlanc told reporters as he left the meeting, “We have more work to do. We're going to continue working up until the last minute. Our job is not finished.” The comment came after President Donald Trump threatened to roll out the steep tariffs by Wednesday but then announced a short‑term delay, citing the recent breakthroughs.

Why the talks matter now

Since the United States first imposed higher tariffs on Canadian steel, aluminium and automobiles, Canada’s export‑driven economy has felt the strain. The measures have cost jobs, reduced factory output and tested the long‑standing economic partnership that sees roughly 70 percent of Canadian exports headed south.

Prime Minister‑designate Mark Carney has been briefing provincial leaders on the proposed terms, which aim to roll back the most punitive rates while keeping some levies in place. Saskatchewan Premier Scott Moe warned that a return to the pre‑Trump “status quo” is unlikely, hinting that any agreement will involve compromises on both sides.

“Both sides want an off‑ramp here,” said trade lawyer Ryan Majerus of King & Spalding.

Opposition leader Pierre Poilievre has already condemned the idea of “one‑sided tariffs”, arguing that they would put Canadian firms at a competitive disadvantage. Meanwhile, provincial premiers are divided over ancillary issues such as the removal of US alcohol from Canadian liquor stores, a move that has drawn sharp criticism from Quebec’s Christine Frechette and Manitoba’s Wab Kinew.

What comes next

Negotiators are expected to reconvene early next week to iron out the remaining points, including the precise schedule for tariff reductions. If an accord is reached before the Wednesday deadline, the United States is likely to suspend the threatened duties, giving both economies breathing room.

Beyond the immediate deal, the two countries still need to settle revisions to the North American Free Trade Agreement, now known as the US‑Mexico‑Canada Agreement (USMCA), which President Trump has signalled he will not renew without significant changes. The outcome of those broader talks will shape the long‑term trade framework for North America.

For more context on President Trump’s recent tariff moves, see Trump's temporary tariff relief on ground beef imports.