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Canada Seeks to Finalise Trade Deal With Trump Amid Midnight Deadline

Canadian trade minister Dominic LeBlanc says talks continue as the U.S. imposes a midnight deadline to avoid fresh tariffs on Canadian goods.

Source: bbc.co.uk1 min read
Canada Seeks to Finalise Trade Deal With Trump Amid Midnight Deadline
Image via bbc.co.uk

In brief

On Friday, Canada’s trade minister Dominic LeBlanc announced that negotiations with the U.S. are still underway as the Trump administration imposes a midnight deadline to lock in a tentative trade pact. The U.S. threatens a fresh wave of tariffs on Canadian goods if no agreement is reached, raising concerns about impacts on dairy, steel and auto sectors. LeBlanc has spent eight hours in back‑to‑back meetings with U.S. representatives, signalling that Canada’s position is still negotiable but under pressure. Canadian leaders, including several provincial premiers, debate the trade balance, with some demanding concessions while others warn against de‑industrialisation. The deadline’s outcome could determine whether Canada avoids higher tariffs on a range of goods, potentially preserving jobs and market access.

Canadian trade minister Dominic LeBlanc told reporters that negotiations with the U.S. are still in progress as the Trump administration sets a midnight deadline to secure a tentative trade deal. LeBlanc said, "We’re going to keep working up until the last minute – our job isn’t finished." The U.S. threatens a fresh wave of tariffs on Canadian goods if no agreement is reached, adding urgency to the talks.

LeBlanc spent eight hours in meetings with U.S. trade representative James Greer and other negotiators, the longest session so far, to hammer out details before Friday night. The deal would reportedly cut U.S. tariffs on Canadian steel and aluminium from 50% to 25% and on Canadian automobiles from 25% to 15%. Canada also faces a possible restoration of U.S. alcohol sales in exchange for easing tariffs.

Canadian leaders are divided. Manitoba Premier Wab Kinew called the prospects for the trade deal “a bad person,” while Quebec Premier Christine Fréchette is studying the impact on dairy farms before deciding on alcohol sales. A leaked audio shows the U.S. Vice‑President Vance suggesting Canada has been “out‑toughening” Trump.

In a recent poll by Leger, 56% of Canadians said they preferred a hard‑line approach to avoid major concessions. The outcome of the negotiations could keep Canada from a 50% tariff on goods ranging from hockey equipment to wine, and could safeguard up to 90,000 jobs according to a Calgary economist.

As the deadline looms, Prime Minister Mark Carney faces intense scrutiny from both industry and political stakeholders. Whether Canada will concede to U.S. demands remains unclear, but the talks continue until midnight.

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