Canada and the United States are racing against the clock to finalize a trade agreement as U.S. President Donald Trump’s threatened 50 per cent tariffs on approximately $28 billion worth of Canadian goods are scheduled to take effect just after midnight.
The looming deadline has intensified pressure on negotiators from both countries, who have been working to convert an agreed framework into a formal legal agreement before the new duties come into force.
Trump announced the proposed tariffs in July, saying they were in retaliation for several Canadian trade measures, including restrictions on American alcoholic beverages, tariffs affecting automobiles and limits on tariff-free access for U.S. dairy products.
The tariffs were originally scheduled to take effect just after midnight Wednesday. However, the deadline was extended until Saturday, giving officials additional time to complete the legal details of the proposed agreement.
Canada-U.S. Trade Minister Dominic LeBlanc and Canada’s chief negotiator Janice Charette have held several meetings in Washington this month with U.S. Trade Representative Jamieson Greer as both sides attempt to resolve the outstanding issues.
The threatened tariffs are particularly significant because, unlike several previous U.S. trade measures, they would also apply to Canadian products that comply with the Canada-United States-Mexico Agreement, commonly known as CUSMA.
If no agreement is finalized before the deadline, a broad range of Canadian exports could face the 50 per cent duty. Products potentially affected range from hockey sticks and honey to concrete and plywood.
With billions of dollars in trade at stake, attention is now focused on whether negotiators can complete the agreement in the remaining hours and prevent another major escalation in Canada-U.S. trade tensions.