Big gap remains between Canada and U.S. in ongoing trade talks: source

A significant gap persists between Canada and the United States in their ongoing trade negotiations, with a deal to reduce current tariffs and prevent new American ones from taking effect next week appearing unlikely. The source, who has direct knowledge of the talks, indicated that substantial progress has yet to be made.

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We shouldn’t be offering any concessions to the United States right now. The reality is the U.S. has imposed tariffs on Canada.

Despite a week of negotiations in Washington described by multiple sources as constructive, with negotiators meticulously reviewing individual tariffs, the path to an agreement remains long. The U.S. administration, according to sources, is willing to sign a deal that includes some form of tariffs on steel, aluminum, autos, and lumber. Conversely, Canada is unwilling to accept an agreement that does not feature a significant reduction in American tariffs.

Sources familiar with the discussions suggest that if a deal is reached, tariffs on Canadian autos and parts compliant with the Canada-U.S.-Mexico Agreement (CUSMA) would likely be reduced from the current 25 percent level. However, auto industry insiders have expressed strong opposition to any tariff levels on CUSMA-compliant goods, viewing it as a major threat to the Canadian industry. Unifor's national president, Lana Payne, stated Friday that Canada should not offer concessions, emphasizing that the U.S. has already imposed tariffs.

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the kind of things that China would do.

The U.S. is also seeking changes to quotas for tariff-free U.S. dairy imports into Canada and wants American alcohol to be available on all provincial liquor store shelves. The Dairy Farmers of Canada have stressed the imperative of not making further concessions on dairy or supply management. U.S. Trade Representative Jamieson Greer has characterized Canada's retaliatory measures as similar to actions taken by China, stating they must be resolved. The Canadian government, however, prefers to reach an agreement before the August 19 deadline to avoid new tariffs, though it is prepared to walk away from a deal.

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it is imperative that no more concessions on dairy or supply management are made in talks with the United States.