WASHINGTON – President Trump and Canadian Prime Minister Mark Carney were in frequent contact on Tuesday, trying to negotiate a trade agreement before the midnight deadline, though the White House has expressed skepticism about reaching a deal.
The issue at hand involves the imposition of 50% tariffs on $20 billion worth of Canadian goods, including hockey sticks, wine, and cheese.
As of Tuesday afternoon, administration officials reported no progress in averting the retaliatory tariffs set to take effect at 12:01 am.
On Monday, Carney described the discussions as “very delicate and intense,” indicating his readiness to retaliate if an agreement is not reached.
Any potential breakthrough will be announced by Trump himself, according to a U.S. official, who dismissed other reports as “baseless speculation.”
In the past 24 hours, Trump and Carney have spoken at least twice, on Monday and again on Tuesday. Canadian Trade Minister Dominic LeBlanc and Chief Trade Negotiator Janice Charette have been in Washington D.C. for several days, holding in-person meetings with USTR Jamieson Greer and Commerce Secretary Howard Lutnick.
The White House views the tariffs as a response to Canada’s own taxes on U.S. goods, particularly American autos, alcohol, and dairy products.
These tariffs are distinct from the retaliatory measures Trump has threatened against Ottawa over wildfire smoke crossing the border and affecting air quality in the U.S. He has accused Canada of polluting U.S. air with the smoke.
Earlier this month, the president informed The Post of his decision on a penalty for Canada, though he has not yet made it public.
Canada ranks as the third-largest source of U.S. imports. The new tariffs would impact consumer goods, as well as building materials like cement and plywood.
Products such as energy, potash, fish, and critical minerals are excluded from the tariff list.
The U.S. goods trade deficit with Canada was $46.4 billion in 2025, according to the Office of the U.S. Trade Representative.
Trump has historically viewed Canada as a challenging partner, even joking about making it the 51st state. He had a contentious relationship with former Prime Minister Justin Trudeau.
Trump and Carney maintain a cordial but tense relationship. They last met in July at the World Cup final in New Jersey, where Trump did not mention the tariff threat he announced the following day.
Over the past year, the two countries have engaged in a series of trade exchanges. Trump imposed various tariffs on Canada, to which Ottawa responded with its own tariffs.
Currently, U.S. tariffs on Canadian goods include a 25% tariff on steel and aluminum, a 35% tariff on softwood lumber, a 10% tariff on certain energy products, a 12.5% tariff related to forced labor prohibitions, and a 25% tariff on non-U.S.-built cars.
In retaliation, Canada imposed a 25% tariff on fully assembled motor vehicles from the U.S. and on alcohol products. For dairy, Canada only applies a tariff once American imports exceed a certain threshold.
