Negotiators are going all-out to get a deal before Trump's looming tariff deadline

OTTAWA — Trade negotiators on both sides of the border are working feverishly to get an interim trade deal done before an Aug. 19 deadline set by U.S. President Donald Trump to impose a 50 per cent tariff on some Canadian goods.

Members of Prime Minister Mark Carney’s new advisory committee on cross-border trade have been told to be on standby for a meeting on Monday as talks heat up ahead of next Wednesday’s deadline, according to multiple sources.

Two sources familiar with the negotiations said negotiators are meeting daily in an effort to get a deal done as quickly as possible.

Trade talks have increased since last month, when Trump threatened to impose a 50 per cent tariff on $29 billion worth of Canadian goods, ranging from alcohol products, sports equipment to cement, effective Aug. 19. The executive order was signed using powers under Section 338 of the Smoot-Hawley Tariff Act.

Carney and Trump agreed to “intensify” trade discussions.

Two sources said Canada made it clear to the U.S. last week that if the tariffs were to go forward on Aug. 19, it will be difficult for Canada to make a deal.

Canada-U.S. Trade Minister Dominic LeBlanc and Chief Trade Negotiator Janice Charette have been in Washington for trade talks for the last three weeks.

Charette and LeBlanc met with United States Trade Representative Jamieson Greer for the third straight time on Tuesday.

In statement on X following the Tuesday’s meeting, LeBlanc said, “discussions remain ongoing, and we continue to engage at the negotiation table to firmly advance and defend Canadian interests.”

In addition to avoiding the Section 338 tariffs, Canadian negotiators are looking for relief on Section 232 tariffs on steel, aluminum, autos and lumber.

In return, Canada is willing to provide concessions on provincial U.S. alcohol bans and counter tariffs and quotas on American autos, irritants that were cited as the reason for the president’s latest tariff threat.

There have also been discussions about how American quotas are allocated under Canada’s dairy supply management system. One source said the Americans are looking for a similar treatment the Europeans have under the Comprehensive Economic and Trade Agreement.

Ottawa’s willingness to provide concessions in the current trade talks has been a point of criticism, most notably from the Leader of the Official Opposition Pierre Poilievre.

On Sunday, Poilievre sent a letter to Carney, which took aim his trade strategy with the U.S.

“For the past year and a half, you have backed down to one American demand after another while getting nothing in return, with concession after concession,” wrote Poilievre.

Carney is currently vacationing in Italy and is on a reduced schedule. The prime minister is due to return Aug. 17, just two days before the tariff deadline.

A release from the prime minister’s office said during this period “he is in close contact with his team and officials on several priorities, including the ongoing Canada-U.S. trade negotiations.”

The bilateral interim agreement, if reached, is expected to be just the first step, in what will be a broader negotiation with the U.S. and Mexico on the Canada-United States-Mexico-Agreement (CUSMA) next year.

On July 1, the U.S. decided not to renew the trade pact for another 16 years. That means CUSMA will now run for 10 years and has entered a phase of annual reviews. Any party can pull out of the agreement with six months’ notice.

Greer said last month that he hopes to get separate bilateral interim deals with Canada and Mexico before the end of this year.

Duncan Wood, visiting fellow at the Wilson Center, said the risk of these interim agreements is how they might impact the effectiveness of the existing CUSMA trade pact.

“Will we end up with a USMCA, a side agreement with lots of carve-outs for Canada and the U.S., and another side agreement with a lot of carve-outs for Mexico and the U.S., and ultimately the USMCA only truly applies to Mexico-Canada trade in its entirety,” said Wood.

“It’s a very messy situation. We’ve lost the simplicity of a free trade deal.”

National Post

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our newsletters here.