Key facts
- Canada and the U.S. are nearing a trade agreement to avert threatened U.S. tariffs.
- The U.S. may reduce auto tariffs to 15% from 25% and halve tariffs on steel and aluminum to 25% as part of the deal.
- Threatened U.S. tariffs of 50% on approximately $20 billion of Canadian goods have been postponed until Saturday.
- Canada's dairy sector and supply management system are expected to remain protected.
- Canadian Prime Minister Mark Carney urged provincial premiers to consider ending a ban on U.S. alcohol imports.
Top trade negotiators from Canada and the U.S. are meeting for a second consecutive day in Washington in a bid to finalize a trade deal that could help reduce months of tariffs and counter duties. Canada's minister responsible for trade with the U.S., Dominic LeBlanc, is due to meet U.S. Trade Representative Jamieson Greer, with both reporting significant progress toward a deal that would stave off a U.S. threat to impose extra tariffs starting on Saturday. The U.S. and Canada are close to a deal under which Washington could reduce tariffs on Canadian-built cars and trucks as well as steel and aluminum. The proposed deal is expected to cut the top-line tariff on Canadian-built vehicles to 15% from 25% and halve tariffs on Canadian steel and aluminum to 25%. U.S. President Donald Trump indicated that Washington would make some tariff concessions and suggested that a deal would also remove Canadian tariffs on U.S. goods. Prime Minister Mark Carney briefed Canada's provincial premiers, urging them to end a ban on U.S. alcohol, which is a particular irritant for Washington, if Canada manages to reach a deal with the U.S. The U.S. and Canada have been embroiled in a trade dispute since Trump imposed tariffs on imports of Canadian steel, aluminum and vehicles last year, prompting countermeasures from Ottawa. Trump postponed until Saturday a new 50% tariff on about $20 billion worth of Canadian goods, citing progress in negotiations.