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With the clock ticking on U.S. President Donald Trump’s threat to boost tariffs on some Canadian exports to 35 per cent starting Aug. 1, Canada’s top trade negotiators are downplaying the likelihood of reaching a deal by that deadline.
Dominic LeBlanc, minister responsible for Canada-U.S. trade, and Canada’s ambassador to the U.S., Kirsten Hillman, wrapped up two days of meetings with Republican senators. These included a brief sit-down between LeBlanc and Howard Lutnick, the U.S. secretary of commerce and Trump’s point man on tariffs.
“We’ve made progress, but we have a lot of work in front of us,” LeBlanc told reporters outside a Senate office building on Thursday.
LeBlanc said he had a “productive, cordial discussion” with Lutnick and plans to return to Washington next week. He also added some caveats about the path to reaching a deal.
“We’re going to continue to work toward the Aug. 1 deadline,’ he said. “But all of these deadlines are with the understanding that we’ll take the time necessary to get the best deal that we think is in the interest of the Canadian economy and Canadian workers.”
Hillman, who was appointed Canada’s chief negotiator with the U.S., also suggested an agreement with the Trump administration is not imminent.
Canada-U.S. Trade Minister Dominic LeBlanc, speaking to reporters in Washington, D.C., said Canada will only accept a deal when there is one in the best interest of workers and the Canadian economy on the table.
“It’s important for us to recognize that there is a time when the deal is the right deal, and it’s important for us to be in a position to continue negotiating until we get to that point,” she said.
Their comments are the latest evidence that Prime Minister Mark Carney’s government is not in a rush to sign a deal with the U.S.
Carney said Tuesday that his objective is “not to reach a deal whatever it costs.”
Following Carney’s meeting with Canada’s premiers earlier this week, Nova Scotia’s Tim Houston said the prime minister isn’t dead set on signing a deal by the deadline.
Other countries reach tariff deals with Trump
This comes amid Trump’s announcements this week of framework agreements on tariffs struck with Japan and Indonesia, and reports the U.S. is closing in on a deal with the European Union.
Canada may be less panicked than other trading partners about the Aug. 1 deadline because only a small portion of Canada’s exports to the U.S. would be affected by Trump’s threat of 35 per cent tariffs. That’s because most goods enter the U.S. tariff-free under the Canada-U.S.-Mexico Agreement, or CUSMA.
Officials say LeBlanc and Hillman met with five Republican senators in Washington: Kevin Cramer (North Dakota), Roger Marshall (Kansas), Shelley Moore Capito (West Virginia), Tim Scott (South Carolina) and Todd Young (Indiana).
Another Republican senator, Lisa Murkowski of Alaska, told reporters in Washington on Thursday that the U.S. shares a lot of security and economic interests with Canada and shouldn’t treat it as “just another country” when it comes to tariffs.
“I wish that I could say it feels good, that this is all going to be taken care of before the first of August, but I’m not sensing that,” said Murkowski, who visited Ottawa on Monday to meet Carney and some of his cabinet ministers