- Canada's lead trade negotiator, Janice Charette, has warned her American counterparts that if the White House imposes more tariffs, it could put further trade talks at risk.
- Charette’s comments were first reported by The Globe and Mail on Wednesday.
- Ahead of next week’s deadline, Canada-U.S. Trade Minister Dominic LeBlanc and Charette are in Washington for the third time in as many weeks.
- Both sides aim to present a trade deal layout to Trump days before the Aug. 19 deadline.
- Provincial bans on U.S. alcohol are among the primary policies highlighted by Trump as an irritant; eight out of the 10 provinces – excluding Alberta and Saskatchewan – have removed U.S. alcohol from store shelves since last year.
- Last week, proposals being discussed between Canadian and American officials include removing the counter-tariffs on autos and provincial bans on alcohol, as well as changing how dairy quotas are managed; in return, Canadians are seeking relief on Section 232 tariffs.
- Under Section 232, the U.S. has imposed 15 to 50 per cent tariffs on steel, aluminum and copper products, 25 per cent tariffs on autos and trucks and 10 per cent tariffs on softwood timber and lumber.
Canada's lead trade negotiator, Janice Charette, has issued a stark warning to U.S. counterparts that further tariffs could derail ongoing trade negotiations. As both nations aim for a deal before the August 19 deadline, key issues remain unresolved.1
Charette's comments, first reported by The Globe and Mail, highlight the precarious nature of the discussions. Industry sources indicate that while no ultimatum was given to U.S. Trade Representative Jamieson Greer, he is aware of the situation's gravity.2
A significant point of contention is the provincial bans on U.S. alcohol, which have been a focal issue for President Trump. Eight out of ten provinces have removed U.S. alcohol from store shelves since last year, complicating negotiations. Charette conveyed to Greer that the Canadian government cannot pressure provinces to lift these bans without meaningful tariff relief for affected industries, including steel and aluminum.56
In recent discussions, Canadian and American officials have explored proposals to eliminate counter-tariffs on autos and address dairy quota management. In exchange, Canada seeks relief from Section 232 tariffs, which impose tariffs ranging from 15 to 50 percent on steel, aluminum, and copper products, as well as 25 percent on autos and trucks.78910
As the deadline approaches, both sides are working diligently to present a comprehensive trade deal to President Trump, underscoring the urgency of the situation.
“Industry sources say no ultimatum was given to U.S. Trade Representative Jamieson Greer, but he understands the reality. Provincial bans on U.S. alcohol in eight provinces remain a key irritant, with relief sought for steel and aluminum under Section 232 tariffs.”
CP24
