U.S. and Canadian trade negotiators gathered on Wednesday in Ottawa after President Donald Trump announced a three‑day pause on the 50% tariffs he had slated for certain Canadian products. The meeting came as both sides faced a looming deadline of 12:01 a.m. ET on Saturday, when tariffs on roughly $20 billion worth of Canadian goods would take effect if no agreement is reached.
Key participants and statements
Canada’s minister responsible for U.S. trade, Dominic LeBlanc, and chief trade negotiator Janice Charette met with U.S. Trade Representative Jamieson Greer, according to a statement from LeBlanc’s office. President Trump said late Tuesday that the two countries had a deal pending final documentation, while Canadian Prime Minister Mark Carney described the progress as substantial but noted that “important work” still remained.
Auto tariff negotiations
Automakers are watching closely, hoping for a sharp reduction in the 25% U.S. tariff on imported Canadian vehicles and parts. Sources said Canada is pushing for a 10% tariff, lower than the U.S. offer of 15%. The discussion also includes whether the tariff reduction will apply to medium‑ and heavy‑duty vehicles as well as passenger cars and trucks.
Another unresolved issue is how the value of regional content—originating from Mexico, the United States, or Canada—will be deducted from the tariff calculation. Canada wants deductions to apply to all vehicle components, while the United States has not clarified its position.
Other trade issues
The White House announced that senior U.S. officials have been told Canada must remove what Washington views as discriminatory treatment of U.S. alcoholic beverages, cheese, and motor vehicles. Canada has not confirmed any specific concessions.
A Leger poll released Wednesday showed that 56% of Canadians prefer Prime Minister Carney not make further concessions to the United States.
Keystone XL reference
In a Truth Social post announcing the tariff pause, President Trump suggested that the long‑abandoned Keystone XL pipeline project could be revived, though he offered no details on how it fits into the broader trade talks. The pipeline, originally intended to move Canadian crude to U.S. refineries, was cancelled by former President Joe Biden in 2021 after environmental and Indigenous opposition.
South Bow, the TC Energy spinoff that holds the Keystone XL assets, declined to comment on the President’s remarks.
Outlook
U.S. Trade Representative Greer indicated that any agreement would include comprehensive market access for American goods, economic‑security commitments, digital‑trade alignment, and other provisions, but offered no further specifics. With the deadline only days away, both sides face pressure to resolve the remaining issues before the tariffs take effect.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
