Canada, U.S. dig in on tariff negotiations as deal hopes fade

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsEconomyCanada, U.S. dig in on tariff negotiations as deal hopes fadeShould the tariffs go into place, it would mark the latest blow to the relationship between the two longtime alliesAuthor of the article:Josh Wingrove, Alicia Diaz and Jennifer A. DlouhyA Carney-Trump call would be a last-ditch effort to reach an agreement, and even that is considered a long shot by U.S. officials. Photo by Evelyn Hockstein/Pool/Getty ImagesPresident Donald Trump’s administration is downplaying expectations for a last-minute deal with Canada to avert fresh tariffs set to take effect Wednesday, people familiar with the matter said.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe United States has signalled privately that the chances of a deal on Tuesday are a coin flip or worse, said the people, who spoke on condition of anonymity to describe confidential discussions. The two sides face a midnight deadline before 50 per cent tariffs on billions of dollars worth of Canadian goods would kick in.It’s not clear whether those signals represent the true state of negotiations or an attempt to increase leverage. Trump — who routinely makes last-minute demands from trading partners — is scheduled to speak again with Prime Minister Mark Carney on Tuesday, some of the people said. The two also held a phone call on Monday. Tractor trailers and private vehicles entering the US from Canada at the Pacific Highway Border Crossing in Blaine, Washington.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againThe U.S. provided what they described as their best offer to Canada, one of the people said. A Carney-Trump call would be a last-ditch effort to reach an agreement, and even that is considered a long shot by U.S. officials, the person said.The White House, the office of U.S. Trade Representative Jamieson Greer and Carney’s office did not immediately respond to requests for comment.Should the tariffs go into place, it would mark the latest blow to the relationship between the two longtime allies, which has been tense since Trump returned to office last year. The U.S. president began his second term by imposing tariffs on Canada and Mexico and has suggested he’d rather toss out the North American trade agreement he negotiated during his first presidency.The trade actions have spurred widespread resentment of the U.S. in Canada, with provincial governments pulling American-made alcohol from retail stores and many Canadians cancelling or avoiding U.S. trips. A car hauler truck makes its way to the Ambassador Bridge to cross into the United States in Windsor, Ontario. Photographer: Bill Pugliano/Getty ImagesThe threat of tariffs under the never-before-used Section 338 of the Tariff Act of 1930 amounted to an attempt to ramp up pressure on Canada, in the midst of a review of the continental trade pact known as the Canada-U.S.-Mexico Agreement.Carney has said he’ll keep all options on the table to respond to any new U.S. levies, including trade retaliation. Canadian negotiators have warned their U.S. counterparts that implementing the Section 338 tariffs would provoke a public reaction in Canada and effectively end Carney’s ability to negotiate on concessions.The treatment of the auto sector has been a major sticking point in talks. Jamieson GreerIt’s possible the U.S. could delay the duties to allow more time for talks, though some people familiar with the matter said that appears unlikely.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.The two countries have seen sharp reversals and 11th hour swings in their trade actions throughout Trump’s second term. In February 2025, Trump delayed a plan to hit imports from Canada and Mexico with 25 per cent tariffs, only to impose a watered-down version the following month.Canada punched back with retaliatory counter-tariffs, but Carney removed many of them several months later.Canada is seeking a deferral of the proposed Section 338 tariffs and relief from existing ones on sectors such as autos and steel. The U.S. wants Canada to end its alcohol boycotts and drop other retaliatory measures.—With assistance from Brian Platt.We apologize, but this video has failed to load.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.