Canada is facing yet another deadline and could see sweeping 50 per cent tariffs imposed on goods worth billions of dollars, unless Ottawa and Washington can finalize a tentative trade deal before midnight.
The American tariffs were expected to take effect on Wednesday, but U.S. President Donald Trump delayed the levies for three days citing a “deal” that was in the works between both sides.
Canadian officials, led by Canada-U.S. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette, have been in Washington, D.C., trying to finalize the finer points of the deal with U.S. Trade Representative Jamieson Greer.
During a virtual meeting with Canada’s premiers on Wednesday, Prime Minister Mark Carney asked them to put U.S. alcohol back on their shelves to help the deal progress, several premiers said.
Provincial boycotts of American alcohol have been a major trade irritant for Trump, who pointed to what he called “discriminatory” measures when he announced fresh tariffs on Canada last month.
After a meeting with Greer that lasted around three hours on Thursday afternoon, LeBlanc said the two sides were “very close” to a deal.
“We’re very close, we continue to make progress,” LeBlanc told reporters.
A source with direct knowledge of the talks said the U.S. could cut steel and aluminum tariffs from 50 per cent to 25 per cent and auto tariffs from 25 per cent to 15 per cent.
Two sources also told Global News that tariff relief for Canada’s softwood lumber industry is also being discussed.
How premiers reacted
Manitoba Premier Wab Kinew said he was “skeptical” of a good faith trade deal with Trump.
“(We could have) the best deal in the world today. (If) things go off the rail in Iran for him next month, who is to say he’s not going to try and whack us on the head again?” Kinew said in a radio interview with 680 CJOB in Winnipeg.
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680 CJOB is owned by Corus Entertainment, which is the parent company of Global News.
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Kinew said he was not announcing a return of U.S. alcohol to Manitoba’s shelves on Thursday.
“The prime minister very clearly asked us to put the booze back. He very clearly wants this. He’s like, you know, just blame me, put this on me,” he said.
“We reserve the right to take it back off again, because we know that this guy is very erratic, the American president. And he may go back on his word, as he’s done countless times,” he added.
Kinew said some sectoral tariffs are likely to stay, despite a new trade agreement.
Nova Scotia Premier Tim Houston told reporters after the meeting that Carney’s request “came directly out of the negotiating table.”
“We’ll work through that process,” he said, adding that it is something he would be willing to do “pending a final deal.”
While British Columbia Premier David Eby called for a “Team Canada” approach on Wednesday, he did not address the issue of bringing alcohol back on the shelves.
Saskatchewan Premier Scott Moe said he looks forward to this deal being finalized.
“Any deal that eliminates and reduces tariffs is a good deal for Canada and Saskatchewan,” Moe said.
–With files from Global’s Mackenzie Gray