Trump says Canada trade talks are ‘moving along’ as tariff deadline nears

Trump’s comments come as negotiators from both countries hold intensive discussions in Washington, with a 50% tariff on about $20 billion worth of Canadian goods scheduled to take effect unless the two sides reach an agreement.

According to Reuters, Canadian and U.S. trade teams were engaged in talks on Friday as they sought to finalise a deal before the tariff deadline.

Canadian Trade Minister Dominic LeBlanc and U.S. Trade Representative Jamieson Greer have indicated that significant progress has been made, although key differences remain.

The negotiations follow a last-minute decision by Trump earlier this week to delay the planned tariffs by three days, giving the two countries additional time to negotiate. The original tariffs were due to take effect on August 19.

Trump said the talks were progressing and suggested that an agreement could be reached, while Canadian Prime Minister Mark Carney has also said the two sides were moving toward an agreement. Reuters reported that the proposed deal could include lower U.S. tariffs on Canadian-built vehicles and metals.

However, major issues remain unresolved. Reuters reported that auto tariffs are among the key sticking points, while negotiations have also involved U.S. demands concerning Canadian dairy-market access and provincial restrictions on the sale of American alcohol.

Canada, meanwhile, is seeking relief from tariffs affecting sectors including steel, aluminium and automobiles.

The talks mark another attempt to ease a trade dispute that has strained relations between the two North American neighbours. Earlier in August, Canadian officials indicated that the two sides remained far apart on a potential draft agreement, according to Reuters.

Global News reported on August 13 that LeBlanc described negotiations as ongoing and said Canada was continuing to advance its interests after meeting Greer in Washington. The meeting was the fourth between the two officials in three weeks.

Reuters reported that the proposed 50% tariffs would apply to a range of Canadian products that would otherwise qualify for preferential treatment under the United States-Mexico-Canada Agreement.

The affected goods include wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment.

The outcome of the talks could have significant implications for Canada, whose economy remains heavily dependent on trade with the United States.