According to Canadian media reports on Thursday, with the U.S. deadline for imposing additional tariffs on Canada fast approaching, negotiations between the two countries have reached a stalemate due to major differences over core interests.
The reports said that senior trade officials from both sides have held multiple rounds of intensive consultations in Washington over the past few days, but their positions remain far apart, with no signs of a deal in sight.
U.S. President Donald Trump signed several proclamations on July 20, invoking Section 338 of the Smoot‑Hawley Tariff Act to impose a 50% tariff on hundreds of specific Canadian imports, including wine, hockey sticks, and cement. The new tariffs are set to take effect on August 19 at 12:00 a.m. Eastern Time. In addition, the U.S. tariffs previously imposed on Canadian steel, aluminium, automobiles, and lumber since last year remain in place.
According to the reports, Canada’s demands in the talks are that the U.S. refrain from imposing the new tariffs and also reduce the existing duties on Canadian steel, aluminium, automobiles, and lumber. The U.S., however, is demanding that Canada remove its import restrictions on U.S. dairy products, lift provincial bans on U.S. wine sales, and repeal local procurement rules that give preference to Canadian products.
