By Paul Vieira and Amanda Coletta
OTTAWA–Canadian Prime Minister Mark Carney expects to speak with President Trump about Washington’s intention to slap a 50% tariff on roughly $20 billion of Canadian imports as early as Wednesday.
The U.S. and Canada are engaged in “very delicate and intense negotiations,” Carney told reporters Monday in the province of Newfoundland, as he unveiled plans for a big electricity-generation project. Negotiators for Canada have been in D.C. for the better part of a week to reach a deal that would persuade the Trump administration to either delay or scrap the imposition of proposed hefty levy.
The duty marks the latest escalation in U.S.-Canada trade tensions, after Trump imposed hefty duties on its northern neighbor despite the existence of the U.S.-Mexico-Canada trade treaty. Canada is the lone Group of Seven country that has not reached a deal with the U.S. regarding tariffs.
Carney has tried to rally other global leaders, especially in Europe, to collaborate on policy to counter the economic and geopolitical influence exerted by the U.S.
The 50% tariff targets specific manufactured goods in vote-rich provinces like Ontario, Quebec and British Columbia. Its imposition wouldn’t necessarily trigger recession fears, economists say. However, the new hefty tariff would likely further thwart efforts to increase private-sector investment–which is needed to shift economic growth to a higher gear, said Bradley Saunders, an analyst at Capital Economics.
Canada’s minister in charge of U.S. trade, Dominic LeBlanc, is scheduled Monday to meet U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.
Carney skirted questions about what he and Trump might talk about, and the state of negotiations. He said his government does have options should the White House proceed with the 50% duty, without elaborating.
A representative from the White House did not immediately respond to a request for comment.
The Trump administration revealed last month plans to impose the tariff, and said the new tariff is necessary due to Canada’s alleged mistreatment of U.S.-made automobiles, dairy products, and wine and spirits. At that time, Carney said he and the president agreed to intensify trade talks between the countries.
Canadian negotiators have been seeking a deal under which the U.S. would hold off on the threatened tariffs and ease existing levies already imposed on Canadian steel, aluminum, autos and lumber, according to people briefed about the negotiations. In exchange, the Canadian government would make certain concessions, including widening access to its dairy market and pressing provincial leaders to put U.S. alcohol back on shelves. Late last week, people familiar with the talks said the two sides still had major gaps to bridge.
“My sense is the Canadians, they want to have a more conciliatory approach but we’ll see,” Greer told reporters in Iowa last week. “At the end of the day, we’re going to do what’s best for America. If there’s a way to bring Canada along with that, we’re happy to do that.”
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
08-17-26 1430ET
