Canadian federal and provincial leaders are sharply divided over a proposed trade agreement with the United States as negotiators race toward a Friday deadline to finalize terms before additional tariffs take effect.
Prime Minister Mark Carney’s administration has been working to reach an agreement that would head off a threatened 50% tariff on various Canadian goods. According to leaked details, the deal would reduce US tariffs on Canadian steel and aluminium from 50% to 25% and on automobiles from 25% to 15%. In exchange, Canada would reportedly restore sales of American alcohol on liquor store shelves, grant increased market access to American dairy producers, and remove retaliatory tariffs on US goods.
Manitoba Premier Wab Kinew has emerged as a vocal critic of the prospective agreement, publicly stating that Canada should resist making concessions and hold out for better terms. Kinew characterized the US president as unreliable and questioned the rationale for surrendering negotiating leverage. Quebec Premier Christine Fréchette indicated she would assess the deal’s impact on Quebec’s dairy sector before deciding whether to support restoring American alcohol sales. Meanwhile, premiers from Nova Scotia and the Yukon said they were prepared to proceed with that provision, and Ontario Premier Doug Ford has not yet commented publicly. The mayor of an Ontario city housing the country’s second-largest steel producer expressed concern that tariff rates of 25% would not adequately benefit his community.
The proposed agreement has drawn criticism from multiple quarters. Conservative opposition leader Pierre Poilievre called the terms unfavorable to Canadian industry. However, Carney faces countervailing pressure from businesses and economists warning that allowing additional tariffs could result in job losses. A recent economic analysis estimated potential job losses of 90,000 if the threatened tariffs were implemented. Public polling suggests a majority of Canadians favor a hardline negotiating stance, with 56% surveyed by Leger indicating they wanted the government to take a firm approach.
Canada-US Trade Minister Dominic LeBlanc is scheduled to meet with US Trade Representative Jamieson Greer on Friday morning, with LeBlanc having indicated after Thursday’s meeting that the two sides were in close agreement. The tight deadline underscores the urgency of reaching resolution before the additional tariffs take effect.
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