Canada and US Still Short of Trade Deal as Deadline Nears
Hours before a US-imposed trade deadline, Canada and the US have yet to finalize an agreement, with Prime Minister Mark Carney facing pressure both to compromise and to hold firm.
With hours left before the deadline, President Donald Trump would not confirm whether a full deal with Canada had been reached, saying only that talks were "moving along." He also mentioned a new round of negotiations was starting with Mexico.
The complete framework has not been made public, but reports suggest the US may lower tariffs on Canadian steel and aluminium from 50% to 25%, and on Canadian autos from 25% to 15%. In exchange, Canada is reportedly considering restoring US alcohol sales, giving American dairy producers greater market access, and dropping its retaliatory tariffs.
Domestic pushback
Conservative leader Pierre Poilievre warned that any deal involving one-sided tariffs risked de-industrializing key Canadian sectors. Manitoba Premier Wab Kinew urged Canada to keep fighting rather than rush into concessions. Quebec Premier Christine Fréchette, representing a province with a major dairy sector, said she was still assessing the impact on farmers before deciding on alcohol sales. Ontario's Doug Ford has not yet commented, while Nova Scotia and Yukon's leaders said they were ready to restore US alcohol sales.
The mayor of an Ontario city home to Canada's second-largest steel producer said a deal that still includes 25% tariffs on the industry would be nothing to celebrate.
Economic stakes
An analysis by economist Trevor Tombe estimated Canada could lose up to 90,000 jobs if new tariffs take effect. Trump has also threatened an additional 50% tariff on a range of Canadian goods, including hockey equipment, wine and cement.
Polling shows most Canadians favor a hardline stance, with 56% telling pollster Leger they want a tough approach. In a leaked recording, US Vice-President JD Vance said Carney had made significant concessions despite presenting the talks as a win for Canada.
