Context:

Canadian and U.S. officials planned another round of talks as a 50% tariff on certain Canadian goods was set to take effect within days, aiming to reach a comprehensive deal for businesses and workers on both sides of the border. The talks center on softwood lumber and broader tariff concessions, with key figures from Canada and the U.S. weighing options as a deadline approaches. While Canada seeks relief and possible reductions for CUSMA‑compliant autos and parts, Washington signals continued interest in tariffs across steel, aluminum, autos, and lumber. The negotiations remain marked by a significant gap, divisions over lumber relief, and pressure from provincial leaders and business communities to avoid a deal that leaves key sectors exposed. A path forward hinges on balancing concessions with protections that can secure a deal before Wednesday.

Dive Deeper:

• Officials planned a Sunday meeting between Canada’s Dominic LeBlanc and the U.S. Trade Representative Jamieson Greer to review progress and outline next steps toward a comprehensive cross‑border agreement.

• The U.S. is poised to implement a 50% tariff on selected Canadian goods in three days, intensifying tensions and prompting political and industry concerns in Canada.

• Conversations have highlighted a split over softwood lumber relief, with two knowledgeable sources indicating the Americans are not inclined to reduce existing 45% duties on lumber.

• Canada is aiming to finalize a deal before the tariff deadline to avoid new 50% tariffs on about $28 billion of Canadian goods, with talk of preserving some tariff protections for autos under CUSMA while seeking reductions.

• One proposed outcome discussed is a 10–15% tariff on CUSMA‑compliant autos and parts, a proposal that has drawn criticism from auto industry leaders and raised questions about the sector’s inclusion in any deal.

• Province leaders, including B.C. Premier David Eby, criticized high tariffs and warned that U.S. policy risks harming forest and manufacturing workers, urging a negotiation stance that prioritizes Canadian interests.

• Even as negotiators push for a deal, sources say there remains a substantial gap between the two sides, with talks also considering tariffs on steel, aluminum, and alcohol, reflecting broader leverage and concession dynamics.