Paraphrased Article
Canada and the United States resumed trade negotiations in Washington on Friday as both countries faced a midnight deadline for new tariffs on Canadian products.
The proposed measures would impose a 50% tariff on approximately CAN$30 billion worth of Canadian goods, equivalent to about US$22 billion. Despite the approaching deadline, officials from both sides have indicated that progress has been made and that an agreement could be reached.
US President Donald Trump said earlier in the week that the two countries had reached a “very fair” agreement. However, negotiators continued discussions in an effort to finalize the deal before the tariffs take effect.
Canadian Prime Minister Mark Carney has described the negotiations as showing substantial progress. Reports from Canadian media suggested that a possible agreement could reduce US tariffs on Canadian steel and aluminum from 50% to 25%.
In return, Canada is expected to respond to several concerns raised by the US administration. One major issue involves the automotive industry, particularly Canadian taxes and tariffs affecting vehicles and related products.
The US is also seeking greater access to Canada’s dairy market. Washington has criticized Canada’s strict supply management system, which limits the amount of foreign dairy products entering the country.
Another major disagreement concerns alcohol. Canadian provinces previously removed American alcoholic products from store shelves in response to earlier US tariffs. The Trump administration wants the boycott to end because it has negatively affected American alcohol producers.
Canadian provincial leaders have reportedly given Prime Minister Carney cautious assurances that American spirits could return to store shelves. However, Quebec has insisted that any final trade agreement must provide benefits for all sides before it supports ending the boycott.
With the deadline rapidly approaching, negotiators from both countries are continuing intensive discussions in an effort to prevent the new tariffs from taking effect.
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