Canada and the United States are set to hold a second high‑level trade meeting on Sunday as President Donald Trump's 50 percent tariff on a range of Canadian goods is scheduled to start in three days. The talks will bring together Dominic LeBlanc, Canada's minister of trade, and U.S. Trade Representative Jamieson Greer at 4:30 p.m. Eastern to assess progress and outline remaining steps toward a comprehensive agreement.
Softwood lumber remains a sticking point
Conservative leader Pierre Poilievre used a news conference on Sunday to demand that any deal remove the 45 percent tariff on Canadian softwood lumber. He urged Finance Minister Mark Carney to deliver a "win" for the sector, warning that further concessions without reciprocal benefits would be unacceptable.
Sources familiar with the negotiations, who asked to remain anonymous, say the United States is not prepared to lower the softwood duty. British Columbia Premier David Eby echoed the frustration, comparing the tariff burden to that faced by Russia and suggesting the policy is aimed at favouring European and Russian lumber imports.
Broader tariff issues and timeline
Beyond lumber, the United States is pressing for higher duties on steel, aluminium, automobiles and parts, as well as a requirement that American alcohol be returned to provincial liquor shelves. Canadian officials say any deal will retain tariffs on CUSMA‑compliant vehicles but could lower the current 25 percent rate to somewhere between 10 and 15 percent.
The stakes are high: roughly $28 billion worth of Canadian exports could be hit by the new 50 percent tariffs if a deal is not reached before Wednesday. Auto industry leaders have warned that a poor agreement could damage the sector, while Brampton Mayor Patrick Brown said a bad deal would be worse than no deal at all.
LeBlanc's spokesperson Gabriel Brunet described the upcoming meeting as an opportunity to "take stock of the work that has been accomplished by their respective negotiating teams, and the work that still lies ahead, as we seek to reach a comprehensive deal that delivers for businesses, workers, farmers and families on both sides of the border."
Based on reporting by Global News.