Negotiators meet in Washington
United States Trade Representative Jamieson Greer met with Canadian officials in Washington on Monday for last-minute talks aimed at stopping President Donald Trump's threatened 50 percent tariffs. The meeting at the Commerce Department was one of the final chances for the two countries to reach a deal before the tariffs take effect.
Trump announced the tariff plan earlier this month, saying Canada had not done enough to address border security and trade imbalances. The 50 percent rate would hit Canadian goods across a wide range of sectors, from lumber to dairy to auto parts. Canadian officials have called the move unjustified and warned of retaliation.
What Canada wants
Ottawa has pushed for an exemption framework similar to the one negotiated under the USMCA trade agreement. Canadian negotiators say they are willing to tighten border measures and boost enforcement, but they reject the idea that Canada poses a security threat to the United States. The prime minister's office said the two sides remain far apart on core issues.
Business groups on both sides of the border urged a quick resolution. Auto manufacturers warned that 50 percent tariffs would disrupt supply chains that cross the border multiple times during assembly. Lumber and agriculture industries said the duties would raise prices for American consumers and hurt Canadian producers.
Deadline approaches
The talks are set to continue this week, but no extension has been announced. If the tariffs take effect, Canada has said it will respond with countermeasures on US goods. Provincial leaders have also floated restrictions on energy exports, a step that could raise electricity prices in the northern United States.
Analysts say a deal is still possible but time is running out. The two countries trade hundreds of billions of dollars in goods each year, making the dispute one of the largest trade conflicts in North American history.