Ottawa’s Canada-U.S. trade minister and top trade officials headed back to Washington on Monday for more talks on a trade deal.
They’re trying to reach a trade agreement on key sectors before Washington’s latest tariff kicks in, in less than 10 days.
Over the past several days some insiders in Ottawa as well as trade analysts have been speculating about what might be on the table for the White House to drop its latest 50% tariff threat.
The Canadian government is under pressure to make concessions to avoid those tariffs.
So far the talks have been described as tense and at risk of being derailed by President Donald Trump.
Some details are coming out of Ottawa about what possible concessions could lead to a new comprehensive agreement. They include counter tariffs on automobiles and lifting provincial bans on U.S. alcohol products. Canada’s supply management system on dairy has also been mentioned.
"I think this has been clear from the beginning: Canada’s not going to be able to get everything that it wants," said political analyst Lori Williams. "The trick is: Can it get something in exchange for whatever the renegotiated deal is? Up until this point, Canada has made concessions without a response from the United States, and that’s been quite problematic. And, of course, many people in Canada understand that Donald Trump is a very difficult, unpredictable negotiator; very demanding, insisting on certain things being to the benefit of the United States."
Williams said Canada recently appeared to take a tougher stance in the negotiations. Sources in Ottawa said if no deal is reached by the deadline, Ottawa is preparing what’s being described as "surgically targeted" retaliation. Those might not be counter tariffs but could slow access to the U.S. on items such as critical minerals and energy. Most Canadian politicians are warning, however, against too high expectations that a deal will come by Aug. 19.
