Canada-U.S. trade talks continue as tariff deadline approaches

A deadline for a potential 50 per cent U.S. tariff on about $28 billion worth of Canadian exports is set to expire at midnight, as Canadian and U.S. officials work to finalize a trade agreement.

Trade Minister Dominic LeBlanc said the two countries are close to reaching a deal. Canada’s chief trade negotiator, Janice Charette, is also meeting with U.S. officials in what is being described as a final effort to reach an agreement.

According to sources cited in the supplied report, the proposed deal could reduce tariffs on Canadian steel and aluminum from 50 per cent to 25 per cent. Tariffs on vehicles could also fall from 25 per cent to 15 per cent. The reported changes have not been officially confirmed.

In return, the United States is seeking the removal of provincial restrictions on American alcohol and changes to Canada’s dairy market quotas.

The issue of American alcohol has exposed differences among Canadian provinces. Manitoba Premier Wab Kinew has urged Canadians to continue prioritizing Canadian-made alcohol if American products return to provincial store shelves.