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US, Canada negotiators race to ink deal as Trump's tariff deadline looms

From Al Jazeera · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • Canadian and U.S. trade negotiators are in Washington aiming to finalize a deal before looming U.S. tariffs take effect Saturday.
  • The proposed tariffs, threatened by President Trump, target approximately $20 billion worth of Canadian goods.
  • While a deal is seen as imminent, it may not eliminate all tariffs, potentially marking a de-escalation in 18 months of tense trade relations.

Top trade negotiators from Canada and the United States are engaged in intensive talks in Washington, D.C., striving to reach a trade agreement before new American tariffs are set to be imposed on Saturday. These negotiations aim to avert 50% import taxes that U.S. President Donald Trump has threatened against roughly $20 billion in Canadian goods.

While the tariffs were temporarily paused earlier this week, experts express optimism for a last-minute breakthrough. "All indications point to the fact that a deal is imminent before the expiry of the current extension. Or, at most, there might be another extension with negotiations going into next week," said Vina Nadjibulla, co-founder and CEO of the Centre for Strategic Statecraft. However, Nadjibulla cautioned that any agreement might not result in the removal of all U.S. tariffs on Canada.

All indications point to the fact that a deal is imminent before the expiry of the current extension. Or, at most, there might be another extension with negotiations going into next week.

— Vina NadjibullaExpressing optimism about the likelihood of a trade deal being reached.

This potential deal could signify a de-escalation after 18 months of strained relations. Tensions escalated in 2025 when Trump, early in his second term, imposed tariffs on key Canadian imports, leading Ottawa to retaliate. The cycle of tariffs and countermeasures has continued, with Trump periodically introducing new threats. The latest round, initiated in late July, is a response to what Trump describes as Canada's "discriminatory treatment of American products."

Canadian Minister for Trade with the U.S., Dominic LeBlanc, met with U.S. Trade Representative Jamieson Greer for over three hours on Thursday. LeBlanc indicated that the two sides were "very close" to a deal but acknowledged that further work is required. Even if an agreement is reached, Prime Minister Mark Carney might face challenges in gaining acceptance from Canadians and provincial leaders, as the tariffs affect different regions uniquely. A recent poll suggests 56% of Canadians do not want Carney to make further concessions.

very close

— Dominic LeBlancDescribing the status of negotiations with the U.S. Trade Representative.
DistantNews Editorial

Originally published by Al Jazeera in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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