Canada-U.S. Trade Minister Reports Progress in Washington Talks

Canada’s Trade Minister, Dominic LeBlanc, has returned from Washington with optimistic news regarding trade discussions with the United States. Following a productive meeting with U.S. Commerce Secretary Howard Lutnick, which lasted approximately 90 minutes, LeBlanc indicated that significant progress was made on various proposals and items currently under negotiation.

The discussions are set to continue at a technical level between Canada’s Ambassador to the U.S., Kirsten Hillman, who also serves as the chief negotiator, and Jamieson Greer, the United States Trade Representative. This development follows an announcement made by Canadian Prime Minister Mark Carney on August 22, 2023, regarding Canada’s decision to eliminate certain retaliatory tariffs in an effort to foster a more conducive environment for negotiations.

Trade relations between the two nations have been strained due to various tariffs imposed by the U.S. on Canadian goods, including steel, aluminum, automobiles, and copper. Canada had previously responded to U.S. tariffs by implementing its own, with a 25 percent levy on a wide range of American products, from oranges to motorcycles.

The backdrop of these discussions is the recent increase in tariffs imposed by President Donald Trump, who raised tariffs on Canadian goods to 35 percent on August 1. The White House has cited the flow of fentanyl and Canada’s retaliatory measures as reasons for this hike. Notably, these tariffs do not apply to goods that comply with the Canada-U.S.-Mexico Agreement (CUSMA), with Ottawa’s intention to align with CUSMA exemptions set to come into effect on September 1, 2023.

Despite the move to align with CUSMA, Canada’s counter-tariffs on steel and aluminum will remain at 25 percent, while the U.S. has increased its rates to 50 percent. Carney has emphasized that Ottawa’s goal is to see a reduction in Trump’s tariffs on key sectors, including steel, aluminum, automobiles, copper, and lumber, reflecting a desire for a more balanced trade relationship.

In a statement made in Latvia on Tuesday, Carney highlighted the need for collaborative efforts to achieve mutually beneficial agreements. He noted, “In order to do that, we will have to look at other areas where we can have win-win co-operation.”

LeBlanc has expressed his commitment to negotiating a comprehensive package that may encompass investment opportunities in sectors such as defense and security, indicating a willingness to explore diverse avenues to enhance bilateral trade relations. As discussions progress, the focus remains on finding solutions that benefit both nations and ease the current tensions in trade.