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US and Canadian negotiators resumed trade talks in Washington shortly after midday Thursday, as both countries push to finalize a deal to avert new tariffs threatened by President Donald Trump.
The renewed round of talks came a day after officials on both sides said they had moved close to a final agreement, one aimed at easing tensions following months of acrimony triggered by Trump's tariffs on Canadian goods. A new round of 50-percent US tariffs on Canadian imports had been set to take effect Wednesday, but Trump said a day earlier he was delaying enactment by 72 hours as a deal appeared within reach.
Dominic LeBlanc, Canada's minister in charge of bilateral trade with the United States, was in Washington Thursday to meet with US Trade Representative Jamieson Greer. Speaking to reporters, LeBlanc offered no specifics on the state of negotiations, saying only, "I am always looking forward to be back at work."
The full contours of the prospective agreement remain unclear. Prime Minister Mark Carney briefed the leaders of Canada's provinces and territories on the outlines of the pact Wednesday, seeking their cooperation on several fronts as talks with Washington continued.
Nova Scotia Premier Tim Houston told reporters that Carney had made specific requests of the provinces as part of the emerging deal, including a call to return US wine and liquor to store shelves. Several provinces had pulled American alcohol in retaliation for Trump's tariffs on Canadian autos, steel, aluminum and lumber.
"The prime minister has asked us, as premiers, as provinces, to return the US alcohol to the shelves," Houston said, adding that the issue had become "an irritant... that has kind of really bothered the United States."
Houston cautioned that restocking American products would not guarantee sales, pointing to lingering frustration among Canadians over Trump's treatment of the country, including his repeated suggestions that Canada become part of the United States.
Beyond the specific terms of any deal, Houston said, there remains "the emotional impact of what Canadians have experienced," calling the episode "emotionally draining" with effects that would "last a long time."
Carney also asked provinces to strip language from their procurement policies that explicitly excludes American suppliers, according to Houston. Provinces would still be permitted to favor Canadian companies but could not maintain rules that directly bar US bidders from projects.
Houston declined to detail any proposed reductions to US tariffs but characterized the emerging agreement as "the best possible outcome we can hope for in dealing with this administration."
He said the deal would preserve "the core elements of supply management," the Canadian system that regulates dairy and poultry production and imposes steep penalties on US suppliers exceeding certain quotas. The policy has long been a point of friction in US-Canada trade relations and was a recurring issue during past renegotiations of North American trade rules.
Beyond the requests made of Canada's provinces, the United States is believed to be seeking a separate set of commitments from Canada's federal government. Canadian media reports have indicated these demands include commitments on defense procurement and critical mineral supply, though such details have not been officially confirmed by either government.
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