US and Canada move to finalize trade deal

The United States and Canada are moving to finalize a trade agreement after President Donald Trump paused a new round of steep tariffs on Canadian goods, though both governments have released few details about what the deal contains.

Trump and Canadian Prime Minister Mark Carney each described progress this week as their negotiators worked in Washington to avert 50% tariffs that had been scheduled to take effect Wednesday. Trump said late Tuesday he would pause the tariffs for three days after what he called a “good conversation” with Carney.

“I have paused the 50% Tariffs against Canada that were scheduled to kick in tomorrow morning for a three-day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump wrote on Truth Social.

On Wednesday, Trump called the agreement “very fair” and said it would remove tariffs on U.S. exports to Canada. “We have no tariffs going into Canada,” he told reporters, adding that “tariffs will be non-existent for farmers.” He did not specify which agricultural sectors would be affected. Asked whether the U.S. would reduce some of its tariffs on Canada, Trump said it would do so by “a little bit.”

Carney said the talks were moving toward an agreement that would protect Canadian interests. In a post on X, he congratulated U.S. Trade Representative Jamieson Greer and Canada-U.S. Trade Minister Dominic LeBlanc “for the significant progress” in negotiations.

“We are now moving towards an agreement that reinforces that Canadian advantage, including by securing the best terms in each of Canada’s most important strategic sectors and providing greater certainty about our future trading relationship,” Carney wrote.

Trade negotiators met Wednesday for the third time in as many days. After a 45-minute meeting with LeBlanc, Greer told reporters the U.S. side was “very happy” with the talks and said he would soon brief Congress and U.S. stakeholders.

“We feel confident that we’ve reached an agreement that will not only continue to protect American workers, American jobs, American supply chains, but really strengthen the North American economy,” Greer said. He added that the deal eliminates “some of the irritants” the U.S. has had with Canada.

Still, neither country has confirmed the full terms. The threatened tariffs would have covered about $20 billion worth of imports, Al Jazeera reported, and would have applied to goods even if they qualified for preferential treatment under the U.S.-Mexico-Canada trade agreement.

Canada has sought a deal that would lead the U.S. to drop or reduce tariffs on Canadian steel, aluminum, automobiles and lumber. The U.S. has sought concessions from Canada, including the removal of remaining retaliatory tariffs on American autos, changes to dairy quotas to expand access for U.S. cheese producers, and the end of bans on U.S. alcohol sales imposed last year by most Canadian provinces in response to Trump’s tariffs.

Asked Wednesday whether the agreement would include significant concessions on dairy, LeBlanc said Canada’s dairy supply management system — which includes production quotas, set pricing and import quotas on dairy, eggs and poultry — would remain “entirely intact.”

The auto sector has been a sticking point, Reuters reported, citing two unnamed industry sources. Canada and the U.S. discussed cutting U.S. Section 232 tariffs on Canadian vehicles from 25% to 15%, with further reductions based on the amount of U.S. content in each vehicle, according to Reuters.

Nearly 72% of Canada’s goods exports last year went to the U.S. Business groups on both sides of the border have urged the governments to reach a deal, warning that more tariffs would hurt both economies. But public pressure remains a factor in Canada: a Leger poll cited by the BBC found that 56% of Canadians surveyed want their government to take a hardline approach with Washington.