Prime Minister Mark Carney has described the ongoing last-minute negotiations with the U.S. to avert a new set of tariffs as “delicate” and “intense.” He expressed his intention to communicate with his American counterpart within the next 48 hours to reach a mutually satisfactory agreement.
During a press briefing in St. John’s on Monday, Carney refrained from divulging specifics about the negotiations to prevent U.S. President Donald Trump’s threatened Section 338 tariffs on Canadian goods worth billions of dollars. Carney emphasized the sensitivity of the negotiations and the need to maintain confidentiality.
When asked about potential retaliatory actions if an agreement is not reached, Carney asserted his readiness for any outcome, stating, “I have plans prepared for all scenarios.” A spokesperson for the prime minister confirmed that Carney and Trump engaged in a phone conversation on Monday regarding the trade discussions.
Trade Minister Dominic LeBlanc and chief negotiator Janice Charette from Canada have been engaged in talks with U.S. Trade Representative Jamieson Greer over the past three weeks. The discussions aim to prevent the implementation of Section 338 tariffs and reduce existing Section 232 tariffs on various industrial products. A recent meeting between the Canadian officials and their U.S. counterparts lasted nearly two hours, indicating the significance of the negotiations.
While it was anticipated that this meeting would be the final ministerial-level discussion, it remains uncertain if further talks will be scheduled. Sources familiar with the negotiations revealed that additional meetings with Greer may occur before Carney and Trump communicate before the tariff deadline on Wednesday.
Key points of contention in the negotiations include the possible return of U.S. liquor to Canadian stores, removal of Canadian tariffs on U.S. autos, and adjustments to Canada’s dairy sector practices. Canada seeks the elimination of threatened Section 338 tariffs and substantial relief for industries impacted by existing tariffs imposed by the U.S.
Despite indications that the U.S. is reluctant to entirely eliminate its tariff regime, Canadian negotiators remain hopeful for a favorable resolution. Erin O’Toole, a member of the Canadian advisory committee on U.S. relations, acknowledged progress in negotiations but emphasized the importance of reaching a fair deal beneficial to Canadian workers and the economy.
O’Toole expressed concerns over the potential negative impact of escalating tariffs on both economies and stressed the importance of avoiding retaliatory measures. However, he emphasized that Canada is prepared to respond if necessary should the 50 percent tariffs proposed by Trump come into effect.