Concerns have arisen among Canadian negotiators about the inevitability of new U.S. tariffs taking effect on Wednesday, as Ottawa faces challenges in resolving existing sectoral tariffs with Washington and persuading provinces to lift restrictions on American alcohol, sources informed CBC News.
Multiple sources, from both Canada and the U.S., who were briefed on the negotiations with confidentiality, disclosed details about the ongoing discussions.
The negotiations have been escalating, with Canada-U.S. Trade Minister Dominic LeBlanc engaging in another meeting on Sunday with U.S. Trade Representative Jamieson Greer. This virtual meeting, the third in less than a week, lasted approximately an hour.
Ottawa’s recent objective has been to secure a “comprehensive agreement” with Washington. Ottawa aims for the Trump administration to eliminate the new 50 percent tariffs, scheduled to be enforced on nearly $28 billion worth of Canadian goods starting Wednesday, accounting for about five percent of Canada’s exports to the U.S.
The core of this agreement would also involve a reduction in existing sectoral tariffs affecting the steel, aluminum, auto, and lumber industries. Presently, steel and aluminum face 50 percent tariffs, while autos endure 25 percent tariffs.
Jamieson Greer, United States Trade Representative, mentioned in Des Moines, Iowa, that there are concerns with Canada on various issues. Greer emphasized that the current situation is not a trade war but warned against retaliation.
Sources emphasize that securing such a comprehensive dual-focused agreement is crucial to gaining provincial support for any deal, including an agreement to reintroduce American alcohol. Sources indicate that the Trump administration has made the resumption of U.S. alcohol sales in Canada a key demand in the negotiations.
However, the U.S. has not shown willingness to significantly reduce existing sectoral tariffs, and differences persist between the two countries on critical unresolved issues, as reported by CBC News on Friday.
Several provinces are adamant about maintaining their bans on American alcohol unless Washington offers relief from tariffs affecting their industries. This stance poses a challenge for Ottawa, with sources revealing concerns that a finalized deal may be unattainable if
