Trump Tariff Deadline Looms as Canada Seeks Resolution for Trade Issues with U.S.

The United States and Canada have not yet finalized a trade agreement that would prevent President Donald Trump's new tariffs on items such as hockey sticks and wine from taking effect early Saturday. These retaliatory tariffs, set at 50%, were initially scheduled to be implemented on Wednesday. However, Trump announced a three-day postponement on Truth Social, allowing Washington and Ottawa more time to conclude a tentative deal.

Trump's announcement suggested the agreement was nearly complete, pending final document preparation. Despite further discussions in Washington on Wednesday and Thursday, trade officials have not yet reached a definitive agreement.

Canada-U.S. Trade Minister Dominic LeBlanc expressed optimism, stating to reporters on Thursday afternoon, "We're very close. We continue to make progress, and we're going to stay here and do the work that's necessary until we get to that point." He confirmed that Canadian negotiator Janice Charette was actively engaged in talks with U.S. Trade Representative Jamieson Greer and other administration officials, emphasizing that Canadians expect a deal that serves the nation's economic interests and workers.

If an agreement is not reached by 12:01 a.m. ET on Saturday, the 50% tariffs will be imposed on approximately $20 billion worth of Canadian imports. Businesses have expressed concerns that these duties could severely impact their sales, and the threat itself has already had a detrimental effect.

Specific details of the potential deal and any remaining obstacles have not been disclosed. However, reports indicate that Trump's existing tariffs on Canadian steel, aluminum, and lumber are a significant point of contention in the negotiations. LeBlanc's office has declined to comment on how these metal tariffs are being addressed.

President Trump has indicated a willingness to consider lowering these duties, as well as potentially reducing tariffs on Canadian automobiles. He has also suggested that the agreement could lead to the revival of the Keystone XL oil pipeline, a project that was canceled in 2021.

The Trump administration has stated that Canada has agreed to reduce its trade barriers to the U.S., though specifics have not been provided. Trump mentioned on Wednesday that Canadian tariffs "will be nonexistent for our farmers," and the 50% tariff threat was partly a response to Canada's alleged discrimination against the U.S. dairy industry, a claim Canada has not confirmed.

Prime Minister Mark Carney shared on X (formerly Twitter) on Wednesday, "We are now moving towards an agreement that reinforces that Canadian advantage, including by securing the best terms in each of Canada's most important strategic sectors and providing greater certainty about our future trading relationship."

The looming 50% tariffs were enacted last month under Section 338 of the Tariff Act of 1930, a seldom-used law that allows the president to impose duties in retaliation for unfair trade practices. This legislation has not been significantly invoked for decades.

This is a developing story; please check back for updates.