Prime Minister Mark Carney and US President Donald Trump are expected to discuss trade issues “over the next number of days,” according to a Canadian official, following the failure to reach a deal before the August 1 tariff deadline. Dominic LeBlanc, Canada’s minister in charge of US trade, stated on CBS’s Face the Nation that there is still an opportunity to strike a deal. The aim is to reduce tariffs and provide greater certainty for investment. LeBlanc also indicated his intention to speak with US Commerce Secretary Howard Lutnick.
The Trump administration recently increased the tariff rate on some Canadian imports. These tariffs rose to 35 per cent from the previous rate of 25 per cent, which had been imposed in early March. However, goods traded under the US-Mexico-Canada agreement will maintain their exemptions.
The change in tariffs is estimated to have a relatively small, but noticeable, effect on trade between the countries. The effective US tariff rate on Canadian products is projected to increase slightly, landing between 6 per cent and 7 per cent. Previously, the rate hovered around 5 per cent. Carney and his government have described the ongoing discussions with the US as difficult.
