Following a series of intensive discussions and President Donald Trump’s decision to delay new tariffs on Canadian products, Canada and the United States are edging closer to securing a new trade agreement.
Momentum Builds as Tariff Threats Retreat
On Wednesday, trade delegations from both nations entered a third consecutive day of high-level meetings. President Trump had earlier considered rolling out additional tariffs on Canadian exports but decided overnight to postpone that action. After a 45-minute consultation with his Canadian counterpart, US Trade Representative Jamieson Greer described the current negotiations as encouraging. According to Greer, American negotiators are “very happy” with the tentative outcomes, highlighting that the emerging agreement tackles “some of the irritants” that have disrupted cross-border trade.
Greer emphasized, “We feel confident that we’ve reached an agreement that will not only continue to protect American workers, American jobs, American supply chains, but really strengthen the North American economy.”
He also mentioned that he will soon review the details of the agreement with Congress and leading US business groups.
Main Negotiating Points and Possible Concessions
No full text of the deal has been released, but President Trump announced that Canada had agreed to abolish tariffs on certain US farm exports, although he did not specify which products would be affected. The United States, in turn, intends to lower some, but not all, tariffs on goods from Canada. Prime Minister Mark Carney shared news of “significant progress” through a post on X (formerly Twitter) on Wednesday, indicating that the countries are closing in on a deal promising “the best terms” for key Canadian industries and providing long-term security for Canadian-American trade.
The Canadian government is focused on securing an end—or at least a reduction—to US duties on steel, aluminium, lumber, and vehicles. Carney briefed his cabinet and provincial premiers with updates, drawing comments from Nova Scotia Premier Tim Houston. According to Houston, Carney requested that provinces reopen their markets to US alcohol imports at America’s urging—an issue that arose when Canadian provinces banned those sales last year in response to earlier tariffs from Washington.
Houston remarked, “It’s been something that has kind of really bothered the United States for so many reasons. Now, whether Canadians will really buy it when it’s back on the shelf, that’s a whole other discussion.”
No Change to Canadian Dairy Protections
The US also sought greater access to the Canadian dairy market and wanted Canada to lift retaliatory tariffs on American-made vehicles. However, Minister LeBlanc stated on Wednesday that the Canadian supply management framework, which regulates quotas, prices, and import restrictions for dairy, poultry, and eggs, would stay “entirely intact.”
Public opinion appears supportive of a tough stance, as a recent Leger survey found 56% of Canadians want their government to bargain more aggressively with the United States.
Business Community Sees Progress
Industry organizations on both sides of the border have long maintained that heightened tariffs could damage both economies. Canadian Manufacturers and Exporters president Dennis Darby, who serves on Prime Minister Carney’s advisory committee for trade, expressed cautious optimism: “The committee was informed this morning that the negotiations continue and that we’re close, and that’s more positive than we’ve seen in some time.”
Darby pointed out that there is hope this agreement could pave the way for a broader return to the tariff-free environment that was set by the United States-Mexico-Canada Agreement (USMCA), enabling most goods to move freely among the three signatory countries.
Both administrations have reaffirmed their intention to reach a durable deal that avoids more tariff battles and restores certainty for industries and consumers throughout North America.