U.S., Canada near final trade deal as Trump tariff deadline nears

• Trump invoked the rarely-used Section 338 of the Tariff Act of 1930 to impose 50% tariffs on approximately $20 billion in Canadian imports, citing alleged discrimination against U.S. dairy and other unfair trade practices
• Existing U.S. tariffs on Canadian steel, aluminum, and lumber are reportedly a central obstacle in negotiations, with Trump suggesting possible reductions in those duties and lower tariffs on Canadian autos
• Canadian Trade Minister Dominic LeBlanc said negotiators are 'very close' to a deal, while Canadian businesses warn the tariff threat has already impacted sales

Summary: U.S.-Canada Trade Deal Negotiations

Key Development:

The U.S. and Canada remain in active negotiations to finalize a trade deal ahead of a Saturday 12:01 a.m. ET deadline that would trigger President Trump's 50% tariffs on approximately $20 billion worth of Canadian imports, including hockey sticks and wine.

Timeline and Status:

• Original tariff implementation was scheduled for Wednesday but was delayed three days by Trump to allow deal finalization
• Despite Trump's social media post suggesting the agreement was nearly complete "subject to finalization of documents," no deal has been announced following Wednesday and Thursday talks
• Canadian Trade Minister Dominic LeBlanc confirmed negotiations are "very close" and ongoing

Major Sticking Points:

• Existing U.S. tariffs on Canadian steel, aluminum, and lumber are reportedly central concerns
• Trump indicated potential willingness to lower metal duties and reduce tariffs on Canadian autos
• The deal may revive the Keystone XL pipeline project from Alberta to Nebraska

Trade Commitments:

• Trump claims Canada will eliminate tariffs affecting U.S. farmers, though Canada hasn't confirmed
• The 50% tariff threat stemmed partly from alleged Canadian discrimination against the U.S. dairy industry
• Canada has reportedly committed to lowering trade barriers on U.S. goods

Legal Framework:

Tariffs were invoked under Section 338 of the 1930 Tariff Act, a rarely-used Depression-era provision allowing presidential duties in response to unfair commerce.

Market Impact:

Canadian businesses warn the tariffs could cripple sales, with the threat alone already affecting operations. Both nations seek terms protecting their strategic sectors and worker interests.