The United States and Canada announced on Wednesday they are close to finalising a broad trade agreement, following President Donald Trump's suspension of a new round of tariffs on Canadian products. Trump had threatened to impose 50% tariffs on a range of Canadian products from Wednesday, but both sides reached an agreement hours before the deadline expired.
"We've reached an agreement with Canada," Trump told journalists in Washington, though he specified that it remains "subject to the completion of documents". Canadian Prime Minister Mark Carney was more cautious and said that Ottawa and Washington "are moving towards an agreement".
Carney commended his Trade Minister Dominic LeBlanc and Trump's trade envoy Jamieson Greer for "significant progress" in the negotiations. LeBlanc reported that he met again with Greer in Washington on Wednesday and that both sides were "working collaboratively towards a final agreement".
Trump's planned tariffs would affect around 5.5% of Canadian exports to the United States, worth approximately 20 billion dollars, according to Oxford Economics estimates. They would apply to diverse products such as wine, hockey sticks and cement. Trump stated that the agreement would benefit American farmers, who have complained about restricted access to Canadian markets.
Carney maintained that the agreement ensures "the best conditions in each of Canada's most important strategic sectors" and provides "greater certainty about our future trade relationship". Trump's tariffs on automobiles, steel, aluminium and forest products have damaged Canada's economy. Relieving those duties has been a priority for Ottawa during weeks of negotiations.