Canada and the United States are still far from reaching a tariff agreement as the deadline set by President Donald Trump approaches. Sources familiar with the ongoing trade discussions reveal that Canadian officials are not content with the latest proposal put forward by the U.S., which aims to reduce certain sectoral tariffs but falls short of Canadian expectations.

Negotiators from both countries have been engaged in back-and-forth talks in recent weeks in a bid to secure a deal before the looming deadline of August 19. Trump has threatened to impose a 50% tariff on numerous Canadian goods in addition to the existing sectoral tariffs.

The U.S. is pushing for a deal that would grant them preferential access to vital Canadian minerals while also covering areas such as security and energy. Dominic LeBlanc, the Canadian Minister of Trade with the U.S., has held multiple meetings with U.S. Trade Representative Jamieson Greer in Washington with the aim of presenting Trump with a potential trade deal solution at the earliest.

Following a meeting at Greer’s office, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, provided comments to the press. LeBlanc later indicated that discussions are ongoing and that both he and Charette remain committed to negotiations.

Aside from discouraging the U.S. from imposing new tariffs, Canadian officials are seeking relief from existing tariffs on steel, aluminum, lumber, and automobiles. Canada is also hopeful that the ongoing trade talks will lead to the renewal of the Canada-U.S.-Mexico Agreement (CUSMA), especially after the Trump administration declined to extend the deal beyond 2036 last month.

The U.S. cited various trade concerns when announcing the upcoming tariffs, including Canada’s response to U.S. trade policies, such as removing U.S. alcohol from domestic store shelves, and alleged discrimination against American motor vehicles and dairy products.

Conservative Leader Pierre Poilievre has urged for a robust stance in the negotiations, emphasizing the importance of securing a favorable deal for Canadians. He highlighted key demands, including zero tariffs on softwood lumber, the elimination of sectoral tariffs on steel and aluminum, a tariff-free auto agreement, and exemption from Buy America regulations for infrastructure projects.

Reports suggest that Canada is willing to address some U.S. demands, such as ending alcohol bans, in exchange for tariff relief, as the trade discussions continue.

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