Canada’s Trade Minister Dominic LeBlanc expressed optimism on Thursday that a resolution can be reached with the United States regarding punitive tariffs before the Canada-U.S.-Mexico Agreement (CUSMA) undergoes a review next year. LeBlanc stated that ongoing discussions with American counterparts show potential for progress in resolving the trade dispute.
The three North American trade partners have initiated domestic consultations for renewing CUSMA, a process mandated by the agreement. LeBlanc emphasized the importance of a separate agreement on tariffs from the CUSMA renegotiation, hoping for advancements before the formal review process begins.
While other U.S. trade partners like the European Union and the U.K. have agreed to broad tariffs on their goods to settle disputes with Trump, LeBlanc emphasized that Canada will not accept a deal involving baseline tariffs. He highlighted the impact of tariffs on American businesses, particularly in industries like manufacturing that heavily rely on Canadian imports such as aluminum.
LeBlanc mentioned the efforts of Canadian companies like Ford Motors, urging the Trump administration to negotiate a favorable deal. Pressure from smaller U.S. manufacturers facing cost overruns due to tariffs is also mounting, with ongoing lobbying efforts to steer Trump towards a different approach.
Despite missing the August deadline set by Prime Minister Mark Carney and Trump to reach a tariff agreement, LeBlanc remains hopeful that trade issues can be resolved. The escalating tariff pressures, including recent levies on lumber and furniture, pose challenges for Canadian producers.
LeBlanc acknowledged that the road ahead may be challenging but expressed confidence in resolving trade issues beneficially for both economies. He emphasized the importance of strengthening the Canada-U.S. trade relationship for long-term prosperity, despite existing barriers and disagreements.
Regarding discussions on supply management and agricultural products like dairy, LeBlanc reaffirmed Canada’s commitment to its system. The trade minister emphasized that Canada’s investments in the U.S. surpass those of many other countries, intending to highlight this fact in upcoming communications.
Conservative Leader Pierre Poilievre criticized Carney’s handling of U.S. trade negotiations, questioning the delay in achieving a favorable outcome. LeBlanc reiterated Canada’s stance on key trade issues and the commitment to finding mutually beneficial solutions with the U.S.