Can US and Canadian negotiators strike an agreement to avert tariffs by August 1?
The August 1 deadline imposed by US president Donald Trump for countries to strike a tariff deal is looming – but Canada’s trade team is signalling that negotiations may take more time.
Dominic LeBlanc, the minister responsible for Canada-US trade, and Kirsten Hillman, Canada’s ambassador to the United States, recently concluded two days of meetings in Washington, DC. Their visit included a brief meeting between LeBlanc and Howard Lutnick, the US secretary of commerce and Trump’s lead adviser on tariffs.
Negotiators signal caution
“We’ve made progress, but we have a lot of work in front of us,” LeBlanc told reporters Thursday, noting plans to return to Washington this week. While acknowledging the deadline, he added: “All of these deadlines are with the understanding that we’ll take the time necessary to get the best deal that we think is in the interest of the Canadian economy and Canadian workers.”
Hillman echoed this, saying, “It’s important for us to recognize that there is a time when the deal is the right deal, and it’s important for us to be in a position to continue negotiating until we get to that point.”
Those comments are consistent with prime minister Mark Carney’s earlier statement that his goal is “not to reach a deal whatever it costs.”
Trump shifts tone
Speaking to reporters Friday before departing for Scotland, Trump expressed doubts about an agreement with Canada. “We haven’t really had a lot of luck with Canada,” he said. “I think Canada could be one where there’s just a tariff, not really a negotiation.”
This marked a departure from his July 14 interview, where he struck a more hopeful tone: “I think it’s going to work out very well.” Trump pointed to progress with other trade partners, including Japan, Indonesia, the European Union, and China, but said of Canada: “We don’t have a deal with Canada; we haven’t been focused on them.”
Tariff threat and trade challenges
The proposed 35% tariff would affect certain Canadian exports that are already subject to a 25% levy under US emergency trade powers tied to fentanyl trafficking. Still, most Canadian exports enter the US tariff-free under the Canada-United States-Mexico Agreement (CUSMA), possibly explaining Ottawa’s measured approach compared to other nations.
Past sticking points between the two countries have included border security, fentanyl smuggling, a now-abandoned Canadian digital services tax, and limits on dairy imports.
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