Negotiators push to present Trump with trade deal before new tariffs hit Canada: sources

One source said there are plans to deliver the proposal to the U.S. president as soon as Monday, while another source said a potential pact could come together even earlier.

Prime Minister Mark Carney is currently vacationing in Italy, where he is working on a “reduced schedule,” his office said, and is expected to return on Monday. 

Canada-U.S. Trade Minister Dominic LeBlanc returned to Washington on Tuesday for the third time in as many weeks, where he joined Canada’s lead trade negotiator Janice Charette — who has remained holed up in the U.S. capital — in the afternoon for an “approximately hour-long meeting” with United States Trade Representative Jamieson Greer.

LeBlanc’s office declined to comment on the expected timeline or on the outcome of the minister’s latest meeting with his American counterpart.

“Discussions remain ongoing, and we continue to engage at the negotiation table to firmly advance and defend Canadian interests,” LeBlanc wrote in a social media post following the meeting.

Both sides have been closing in on a “comprehensive” trade deal, the Star has reported, after talks ramped up in recent weeks following Trump’s order last month to impose 50 per cent levies on a wide range of Canadian goods in August. Those tariffs are set to apply to imports covered by the Canada-U.S.-Mexico free trade agreement, which the White House has opted not to renew in its current form.

Conversations have revolved around Canada’s willingness to make concessions on a number of trade irritants, including provincial decisions to pull American booze from store shelves, “Buy Canadian” procurement policies, retaliatory tariffs on U.S. autos and Canadian dairy protectionism.

Two sources have previously told the Star, on the condition of anonymity to speak freely, that in exchange, the Canadian side is pushing to lower tariffs that have hammered strategic sectors, which include levies of up to 50 per cent on steel and aluminum. 

The Carney Liberals announced federal relief for the steel industry on Monday, launching a rebate program that would reimburse steelmakers for 50 per cent of the rail and marine transportation costs associated with moving steel within the country.

The additional round of tariffs Trump threatened last month were triggered by a range of “discriminatory” Canadian actions, Greer said.

The promised tariffs, estimated to impact $28-billion worth of goods, target imports like wine, honey, cement, hockey sticks and other wood products, though the Star has also reported that dozens of listed goods are products Canada does not export to the U.S.

In Ottawa on Tuesday, Conservative MP Michelle Rempel Garner said that Carney has thus far failed to fulfil promises to secure a deal.

“He said we’re going to have a better deal in 30 days. That was a year ago. I would like that promise to be delivered on. So, the person who needs to be held to account in the domestic context in Canada is Mark Carney,” Rempel Garner said.