Canada and the U.S. move toward a trade pact, details remain hazy

The United States and Canada are reportedly finalising a trade agreement that could see a significant easing of tariffs that have long fanned tensions between the two neighbours. Trump praised the deal as a win for U.S. farmers and manufacturers, while Canadian officials say it secures “the best terms” for Canada’s key strategic sectors.

The negotiations kicked off again on Wednesday after the U.S. paused a new wave of tariffs it had threatened to impose on a range of Canadian goods. In a 45‑minute meeting with his Canadian counterpart, U.S. trade representative Jamieson Greer told reporters he was “very happy” with the latest progress and that he would brief Congress soon.

Greer said the agreement eliminates several “irritants” that Washington has been raising over Canadian trade practices. He added that it would protect American workers, jobs and supply chains while strengthening the broader North American economy.

Despite the optimism, the specifics of the pact are still murkier. The deal has yet to be formally signed, and the exact concessions both sides have made—particularly regarding dairy quotas, automaker tariffs, and the ban on U.S. alcohol sales—are pending clarification.

Canadian dairy producers insist their supply‑management system, which sets quotas and import limits for dairy, eggs and poultry, will remain intact. The U.S. has also sought a removal of the remaining retaliatory tariffs on automobiles and an adjustment to the wheat quotas that would give U.S. cheese producers freer access.

A Leger survey found that 56 % of Canadians would oppose significant concessions to the United States, indicating a preference for a hard‑liner stance on trade. Business groups, however, argue that any additional tariffs would harm both economies and urge the leaders to reach an agreement.

The U.S. paused a planned 50 % tariff on Canadian imports until the weekend, a move that has furthered talks in Washington where Canadian officials have been solidly camped out to hammer out the deal.

By Nadine Yousif, Senior Canada reporter