Canada and US scramble to finalise trade deal ahead of midnight tariff deadline
Canadian and US negotiators are working past a midnight deadline to finalise a trade agreement that would lower cross-border tariffs and avert the loss of tens of thousands of Canadian jobs.
Canadian and US trade negotiators extended talks late into Friday evening in a race to finalise a bilateral agreement before a midnight deadline. Canada-US trade minister Dominic LeBlanc stated that officials "have more work to do" after an eight-hour session with US trade representative Jamieson Greer.
Failure to secure a tentative deal risks triggering a fresh wave of US tariffs on a broad range of Canadian exports. Calgary-based economist Trevor Tombe estimates that the implementation of these new levies could eliminate 90,000 jobs across the Canadian economy.
While the full framework remains unpublished, leaked details indicate the US would reduce tariffs on Canadian steel and aluminium from 50 per cent to 25 per cent. Automobile tariffs would reportedly drop from 25 per cent to 15 per cent under the proposed terms.
In exchange, Canada is considering granting American dairy producers greater market access and removing existing retaliatory tariffs. The agreement also hinges on Canadian provinces restoring the sale of American alcohol on local liquor store shelves.
Domestic and Political Friction
Prime Minister Mark Carney faces significant domestic resistance as he attempts to secure provincial buy-in for these concessions. Carney, who campaigned on a tough "elbows-up" approach to Washington, is navigating polling data showing 56 per cent of Canadians prefer a hardline stance.
Conservative opposition leader Pierre Poilievre warned that any agreement retaining "one-sided" tariffs would accelerate the "de-industrialisation" of the Canadian economy. Provincial leaders are also divided, with Manitoba Premier Wab Kinew urging Canada to "fight" rather than rush into concessions.
Quebec Premier Christine Fréchette is currently assessing the impact on local dairy farmers before committing to restore US alcohol sales. Conversely, leaders in Nova Scotia and the Yukon territory have indicated they are prepared to allow American alcohol back on shelves.
Local industry representatives remain skeptical of the proposed tariff reductions. Matthew Shoemaker, mayor of an Ontario city hosting Canada’s second-largest steel producer, noted that a remaining 25 per cent tariff "wouldn't be something to celebrate" and expressed concern over the lack of community benefits.
President Donald Trump stated Friday that negotiations were "moving along", adding, "I only make good deals." Meanwhile, a leaked audio recording revealed US Vice-President JD Vance mocking Carney’s negotiating posture, claiming Canada fundamentally "climb down on a lot of issues" despite presenting the talks as a victory.
