US-Canada trade deal close after tariff delay

The United States and Canada said Wednesday they were close to finalising a comprehensive trade deal after President Donald Trump delayed a planned new round of 50% tariffs on selected Canadian goods.

“We've come to a deal with Canada,” Trump said, adding that it was “subject to finalization of documents.” Canadian Prime Minister Mark Carney was more cautious, saying Ottawa and Washington “are now moving towards an agreement.”

The planned tariffs had been due to take effect Wednesday. Trump announced late Tuesday that he would delay them for three days while the two sides worked to finalise a deal.

Carney said Canada-US Trade Minister Dominic LeBlanc and United States Trade Representative Jamieson Greer had made “significant progress.” LeBlanc said he met Greer again in Washington on Wednesday and that the sides were “working collaboratively towards a finalized agreement.”

CNBC reported that Greer expressed confidence after the meeting that the two sides had a pact that would “strengthen the North American economy.”

Details of a prospective agreement remain unclear. Trump said Wednesday it would benefit US farmers, who have complained about restricted access to Canadian markets. The White House had alleged “discriminatory treatment” by Canada against US alcohol, automobile and dairy products when announcing the 50% tariffs.

Carney said the deal would secure “the best terms” in Canada's most important strategic sectors and give greater certainty about the future trading relationship. Trump's tariffs on autos, steel, aluminum and forest products have hurt Canada's economy, and securing relief from those duties has been a priority for Ottawa during weeks of negotiations.

Canada confirmed on July 1 that it wanted to renew the existing North American free trade agreement, but Trump declined and demanded substantial changes.