Bloomberg reported on Saturday that significant differences remained unresolved between the United States and Canada ahead of 19/08/2025, when Washington has threatened to impose 50% tariffs on a range of Canadian products. Canada's chief trade negotiator, Janice Charette, said the two countries still had substantial work to do to reach an interim agreement.
Negotiations on a tight timetable
Charette told a government advisory group that substantial work remained for the two countries before an interim agreement could be reached. Negotiations were expected to continue throughout the weekend, with Canadian officials holding meetings in Washington in an effort to ease trade tensions.
Candace Laing, chief executive of the Canadian Chamber of Commerce and a member of Prime Minister Mark Carney's advisory committee on Canada-U.S. economic relations, said the tight timetable posed a real challenge. She added that the talks appeared constructive, offering some grounds for optimism.
U.S. demands for an end to retaliatory measures
U.S. Trade Representative Jamieson Greer said on Friday that Canada must withdraw its retaliatory trade measures to avoid new tariffs. Washington is seeking the return of U.S. alcoholic beverages to government-run liquor stores in Canada's provinces, after most provinces imposed bans or restrictions in response to tariffs introduced last year.
The United States is also seeking changes involving quotas on Canadian dairy products and retaliatory levies on the automotive sector. Ottawa, meanwhile, is seeking reductions in U.S. tariffs imposed under Section 232, which have affected Canada's steel, aluminum and automotive industries for more than a year.
Warnings that the trade dispute could widen
Canadian officials warned that imposing 50% tariffs would push the dispute into a more dangerous phase. Carney said all options remained on the table if Washington proceeded with the duties, amid domestic pressure on Canada to respond in kind.
Laing warned that further retaliatory measures could harm Canada itself because of the depth of integration between the two economies. She said the government would have to balance responding to U.S. actions with avoiding additional damage to Canadian businesses and consumers.
The White House had threatened to impose the duties under a U.S. trade law dating back to the Great Depression era. Trade between the two countries totaled approximately 900,000,000,000 dollars last year.
