Canada tariffs: Carney talks to Trump before deadline

Canada is trying to reach a last-minute deal with the United States before President Donald Trump's planned 50% tariffs on a range of Canadian goods take effect Wednesday.

A spokesperson for Canadian Prime Minister Mark Carney told AFP that Carney spoke by phone with Trump on Monday afternoon about the trade negotiations. On Monday, Carney said talks to avert the duties were at an “intense and delicate” stage.

Trump signed orders for the duties last month. The White House alleged discriminatory treatment by Canada against US alcohol, automobile and dairy products. The tariffs are set to cover products including wine, hockey sticks and cement.

Oxford Economics estimates the incoming tariffs target about 5.5% of Canada's exports to the United States, worth about $20 billion. It said the overall risk to Canada's economy was modest, but warned that central Canada's manufacturing sector would be affected more severely. It identified cement, paper, printing, wood, clothing and electronics equipment manufacturers as among those expected to be most affected.

Canadian negotiators have been in Washington seeking a deal to avoid the new tariffs and to secure relief from US sector-specific duties affecting Canada's auto, steel, lumber and aluminum industries. Canadian media reported that Ottawa has offered concessions, including pressure on provinces to put US alcohol and wine back on their shelves.

It remains unclear whether a deal is imminent. The US Trade Representative's office did not respond to AFP queries.

Former US commerce official Christopher Padilla told AFP that trade talks often run to the deadline. He said he expected the Trump administration had threatened the new tariffs to seek early concessions from Canada as talks continue over renewing the US-Mexico-Canada free trade agreement.

The duties will not apply to energy, potash or goods already facing sector-specific tariffs, but they are set to hit products covered by the USMCA. Trump's trade envoy Jamieson Greer said in July that the tariffs aimed to “hold Canada accountable” for its retaliation against the United States.