Canada’s federal minister overseeing US-Canada commerce relations, Dominic LeBlanc, mentioned Sunday that he sees a pathway to decreasing newly imposed American tariffs.
LeBlanc expressed optimism {that a} deal may very well be reached to reverse or decrease the 35% US tariff on Canadian goods not covered under the US-Mexico-Canada trade agreement (USMCA), talking on CBS Information.
“I consider there may be an possibility of putting a deal that may deliver down tariffs,” LeBlanc acknowledged, simply days after President Donald Trump signed an govt order sharply rising tariffs, citing fentanyl trafficking and nationwide safety issues.
The Canadian authorities, led by Prime Minister Mark Carney, has voiced disappointment over the transfer however stays engaged in dialogue, with LeBlanc suggesting high-level talks between Carney and Trump might happen “over the following variety of days.”
The trade tension marks the most recent growth in a rising financial dispute between the 2 international locations, with potential ripple results on key sectors together with lumber, autos, and manufacturing.
Potential dialogue amid rising tariffs
Regardless of the tensions, US Commerce Secretary Howard Lutnick hinted at the opportunity of flexibility, saying Trump may rethink the hike if Carney eases Canada’s retaliatory stance.
Canada’s response and exemptions
Canada beforehand responded to US commerce strikes with two rounds of counter-tariffs earlier this 12 months. The primary, beneath outgoing Prime Minister Justin Trudeau, focused about C$30 billion in US exports, together with meals, attire, and bikes. The second spherical matched US tariffs on metal, aluminum, and international vehicles.
Nonetheless, in mid-April, the Carney authorities launched exemptions for sure enterprise inputs important to well being care, public security, and industrial manufacturing. Automakers like Common Motors and Honda, which function Canadian manufacturing crops, have been additionally granted reduction from import duties.
Financial influence
The brand new US tariffs are anticipated to hit key Canadian exports, together with lumber, metal, aluminum, and automobiles. Whereas retaliatory duties have been put in place, Canada continues to permit nearly all of US items to enter tariff-free.
