The U.S. and Canada are engaged in intensive, last-minute trade talks to avert President Donald Trump's 50% tariffs on Canadian goods. The tariffs, impacting roughly $20 billion worth of imports including hockey sticks and wine, are set to take effect at 12:01 a.m. ET on Saturday if a deal isn't finalized. Trump expressed optimism on Friday afternoon, stating, "I think so. We'll see," when asked if a deal had been reached to prevent the looming duties.
This deadline follows a three-day postponement; the tariffs were initially scheduled to kick in on Wednesday but were delayed by Trump via a Truth Social post, indicating a tentative agreement was near finalization. Despite this, trade officials left Washington talks on Wednesday and Thursday without a complete deal. Canadian Trade Minister for the U.S., Dominic LeBlanc, stated earlier on Thursday that negotiators were "very close" and continuing to make progress, emphasizing the need for a deal that benefits Canada's economic interests.
Businesses have warned that these duties could severely impact sales, and the mere threat has already caused distress. While negotiators have been tight-lipped, reports suggest that Trump's existing tariffs on Canadian steel, aluminum, and lumber remain key sticking points. The proposed Section 338 tariffs, unlike previous ones, would apply to goods already compliant with the Canada-U.S.-Mexico Agreement.
