Canada seeks to avert new US tariffs as deadline looms

Ottawa is racing to reach a deal before new American duties on several Canadian products come into force around midnight Tuesday. According to Dawn, President Donald Trump approved the planned 50 per cent levies last month, with the White House claiming Canada treats American alcohol, cars and dairy goods unfairly. Products affected include wine, hockey sticks and cement.

Oxford Economics estimates the measures cover about 5.5 per cent of Canadian shipments heading to the US, valued at roughly $20 billion. The firm called the broader economic risk modest, yet it warned that central Canada's manufacturers would be hit far harder. Prime Minister Mark Carney phoned Trump on Monday, while Canadian negotiators kept pressing in Washington for a deal and relief from sector duties on autos, steel, lumber and aluminium.

Canadian media reported that Ottawa has proposed having provinces restock American alcohol, though whether a deal is near remains uncertain. Former US commerce official Christopher Padilla noted that trade talks often come down to the wire, and he suggested the tariff threats were aimed at winning early concessions ahead of talks over renewing the USMCA trade pact. He also cautioned that Trump might still reject a pact both sides accept and punish Canada over unrelated political disputes.