Canada seeks deal to avert U.S. tariffs on $20 billion of exports

Ottawa is intensifying talks with Washington in an effort to prevent the United States from imposing tariffs of up to 50 percent on a range of Canadian exports slated to begin on Wednesday. The proposed duties would cover roughly $20 billion in products, including hockey sticks, certain clothing, wines, dairy items and building materials such as cement and plywood, while excluding energy, potash, fish and critical minerals.

Prime Minister Mark Carney told reporters the negotiations are "very delicate and intense" and said he intends to speak directly with President Trump before the deadline. U.S. Trade Representative Katherine Tai indicated the tariffs are a response to what the administration describes as Canada’s "discriminatory treatment of American products" and are being imposed under Section 338 of the Tariff Act of 1930, a provision that has never been used before.

Canada’s trade minister, Dominic LeBlanc, and senior trade officials have been meeting with U.S. counterparts, including Deputy Trade Representative Jeff Goettman and U.S. Trade Representative Katherine Tai, in Washington. A spokesperson for LeBlanc said the discussions have involved "several days of detailed technical discussions" and that further meetings are scheduled.

Economists note that such trade barriers typically raise costs for both importers and consumers. KPMG chief economist Diane Swonk warned that the tariffs could add to inflation pressures in Canada, where the consumer price index rose 3.0% in June. Analysts also observe that the administration’s use of the rarely invoked tariff authority signals a more aggressive trade posture.

Both governments have declined to provide detailed updates on the status of the negotiations, and the U.S. Trade Representative’s office did not respond to requests for comment.