Canada-U.S. Trade Minister Dominic LeBlanc’s office said he left Washington Wednesday with a sense that progress was made after a meeting with U.S. Commerce Secretary Howard Lutnick.
LeBlanc’s office said the minister spent around 90 minutes with Lutnick on Tuesday in a constructive meeting where they spoke about specific proposals and items that have been put on the table.
Negotiations about more technical aspects will now continue between Canada’s Ambassador to the U.S. Kirsten Hillman — who is also Canada’s chief negotiator — and United States Trade Representative Jamieson Greer.
This weeks’ progress came after Prime Minister Mark Carney announced on Aug. 22 that Canada will drop some retaliatory tariffs in an effort to intensify talks to ease pressures from U.S. President Donald Trump’s duties on key Canadian sectors.
Canada is being slammed by tariffs on steel, aluminum, automobiles and copper.
LeBlanc has said Canada’s counter-tariffs were a significant point of contention with the Trump administration amid negotiations of a new economic and security relationship.
In response to Trump’s initial economywide duties in March, Canada imposed 25 per cent tariffs on a long list of American goods from oranges and alcohol to motorcycles.
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Trump has hit nearly every nation with devastating duties in his effort to realign global trade but, so far, Canada and China have been the only countries to retaliate with tariffs.
When Trump boosted tariffs on Canada to 35 per cent on Aug. 1, the White House cited the flow of fentanyl and Canada’s retaliatory tariffs as justification for the increase. Those tariffs do not apply to goods compliant with the Canada-U.S.-Mexico Agreement on trade.
Ottawa’s move to mirror the CUSMA exemptions will take effect on Sept. 1.
Canada’s counter-tariffs on steel, aluminum and automobiles will remain. The tariffs on automobiles generally align with the United States but Canada’s counter-tariffs on steel and aluminum remain at 25 per cent, despite the U.S. raising its rate to 50 per cent in June.
Carney has said Ottawa’s focus is to see Trump’s tariffs on steel, aluminum, automobiles, copper and lumber eased. Speaking in Latvia Tuesday, Carney said “in order to do that … we will have to look at other areas where we can have win-win co-operation.”
LeBlanc has said he’s talking to Americans about “a package of stuff” that can include investment opportunities in areas like defence and security.
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