Over the past week, Washington and Ottawa have stepped up trade negotiations, Politico reports.
On 21 October, US President Donald Trump held a phone call with Canadian Prime Minister Mark Carney.
According to two people familiar with the course of the talks, US Commerce Secretary Howard Lutnick, who helped derail the previous round of negotiations over the summer, and Canada’s Trade Minister Dominic LeBlanc have been in regular contact since then.
At the centre of their discussions are the tariffs imposed by Trump on goods such as cars and steel. From the outset, this issue has been a major stumbling block for Canada.
A senior Canadian government official told the publication that, as of Tuesday, the talks remained informal.
The renewed momentum in the negotiating process has prompted numerous media headlines on both sides of the border, as well as statements from the White House that a deal is close. The North American trade dispute will be “resolved very soon”, Trump predicted at a rally in the state of Michigan on Sunday, 25 October.
- It was previously reported that the US had lifted tariffs on a number of Canadian goods that were subject to a 50% duty. The new rules will take effect from 30 October.
- In July, the US introduced additional tariffs against Canadian goods over what Washington viewed as Canada’s discriminatory tariff policy towards American cars and car parts. In August, the US side temporarily suspended these restrictions for three days while awaiting a resolution. However, Canada withdrew from its commitments and halted the talks, causing the tariffs to come back into force.
- Following recommendations from officials, Trump decided to adjust the list of goods. Some Canadian goods will be removed from the scope of the 50% duty, while for other Canadian products, that duty will, on the contrary, be introduced. The changes will apply in addition to existing import restrictions.