President Donald Trump and Canadian Trade Minister Dominic LeBlanc are working against the clock to avoid a steep tariff increase that would affect billions of dollars in cross‑border commerce. The deadline is set for 12:01 a.m. Eastern Time on Saturday, after which a 50% tariff on $20 billion of Canadian exports to the United States could take effect.
Recent developments
Earlier this week, Trump announced a three‑day postponement of the tariffs, saying a deal had been reached to prevent the levies, though final details remain under negotiation. “We’ve come to a deal with Canada,” the president told reporters on Wednesday, adding that the United States would “give something” and take “certain actions,” without providing specifics.
LeBlanc was seen Friday outside the U.S. Trade Representative’s office in Washington, where he was expected to meet with Trump’s top trade official, Jamieson Greer. The two have met multiple times this week, and after Thursday’s meeting LeBlanc said the parties were “very close” to a final agreement.
Key sticking points
Negotiators are wrestling with several issues. Canada has offered to restore American alcohol to provincial liquor store shelves, open certain provincial procurement contracts to U.S. firms, and increase access for U.S. dairy products in Canadian retailers. In return, Canada is prepared to reduce some of its 25% retaliatory tariffs on U.S. cars, steel and aluminum, while the United States has discussed lowering its own duties on those Canadian goods.
Another major point of contention is the Keystone XL pipeline. Trump has suggested reviving the project, which was halted by former President Joe Biden in 2021 after a key permit was revoked. The pipeline, originally designed to transport hundreds of thousands of barrels of crude daily from Canada to the United States, remains stalled. TC Energy, the former developer, is pursuing a separate initiative that would use portions of the existing Keystone XL infrastructure, but the original expansion appears unlikely to move forward.
Potential impact
Even if a deal is reached, analysts note that Canadian consumers have increasingly turned away from American products and reduced travel to the United States, which could limit the economic benefits the administration hopes to achieve.
The outcome of these talks will shape the future of the U.S.–Canada trade relationship, which has deteriorated since Trump returned to office, with tariffs imposed on autos, steel and aluminum and reciprocal measures from Canada.
What’s next
Both sides are expected to continue negotiations through the deadline, with final terms to be announced after the clock strikes midnight on Saturday. The White House and the Canadian Prime Minister’s office have not responded to requests for comment on the latest developments.
Original reporting: El Paso News (HLL/CB) — read the source article.
