Canada and the United States are racing to reach a trade agreement before a midnight deadline. Canadian Trade Minister Dominic LeBlanc has been in Washington for about two weeks to work with US officials. After a meeting on Friday, he said that negotiators had more work to do. He added that they would continue working until the last minute because their job was not finished.
LeBlanc spent about eight hours with US Trade Representative Jamieson Greer and other negotiators. It was one of the longest meetings in the talks so far. President Donald Trump did not confirm that a final agreement had been reached, but he said the talks were moving along. If the two sides cannot finish the details, Canada may face a new wave of US tariffs on many goods.
The full plan has not been made public. However, reports about leaked details say the United States may cut tariffs on Canadian steel and aluminum from 50% to 25%. Tariffs on Canadian automobiles could fall from 25% to 15%. In return, Canada is reportedly considering greater access for American dairy producers, the return of American alcohol sales, and the removal of its own retaliatory tariffs.
The possible agreement has caused disagreement in Canada. Conservative opposition leader Pierre Poilievre called any deal with one-sided tariffs a bad deal. Manitoba Premier Wab Kinew said Canada should fight for better terms instead of making quick concessions. Quebec Premier Christine Fréchette is studying the effects on dairy farmers, while leaders in Nova Scotia and Yukon are ready to restore American alcohol sales. Ontario's premier has not commented publicly.
Businesses and other groups are urging Prime Minister Mark Carney to reach an agreement that could prevent an additional 50% tariff on products such as hockey equipment, wine, and cement. An economic analysis estimated that Canada could lose 90,000 jobs if the new tariffs were introduced. At the same time, polls show that many Canadians want the government to take a hard line. Carney therefore faces a difficult choice between avoiding economic harm and protecting Canada's interests.