Carney briefing cabinet, premiers on potential trade deal with U.S.

Prime Minister Mark Carney is meeting with his cabinet and premiers on Wednesday afternoon to discuss a potential trade deal with the U.S. after President Donald Trump paused threatened 50 per cent tariffs on a broad range of Canadian goods for three days. CBC News Network has the latest.

Photo: La Presse canadienne / Sammy Kogan

John Paul Tasker (new window) · CBC News

U.S. President Donald Trump says he has brokered what he called « a very good deal » with Canada that will work out well for both countries, while giving few details on what exactly has been negotiated.

Canadian and U.S. negotiators are working on the final text of an agreement that would avert new tariffs and smooth over longstanding bilateral trade irritants, officials from both countries said on Wednesday.

U.S. President Donald Trump said he has brokered what he called a very good deal with Canada that will work out favourably for both countries, while giving few details on what exactly has been negotiated. He's paused his latest threatened tariffs as the deal is being finalized.

Prime Minister Mark Carney is meeting with his cabinet to discuss the deal, according to his official itinerary. Then, Carney and his negotiators will brief the premiers on what's to come.

Carney said in his own statement on social media there had been significant progress with the Americans, and framed the prospective deal as one that will position Canada well compared to other countries also grappling with Trump's protectionist policies.

Canada entered these discussions with the best overall trade terms. We are now moving towards an agreement that reinforces that Canadian advantage, including by securing the best terms in each of Canada's most important strategic sectors and providing greater certainty about our future trading relationship, Carney said.

A source with knowledge of the agreement said the U.S. tariffs on Canadian steel and aluminum are lowering to 25 per cent from 50 per cent.

There are still discussions happening around derivatives and exemptions.

WATCH | Trump says deal is good for U.S. farmers:

Trump claims certain Canadian tariffs on U.S. goods will be 'non-existent'

U.S. President Donald Trump says Canada and the U.S. have reached a 'very fair deal' for both countries, after pausing threatened 50 per cent tariffs on a broad range of Canadian goods. Trump says tariffs on U.S. farm goods are 'going to be eviscerated down to zero,' when the deal is finalized.

Canada also has tariffs on some dairy imports that exceed a set quota. But American producers do not export enough dairy to meet Canadian tariff rate quota thresholds (new window).

Still, Trump said what's been negotiated is great for our farmers.

Our farmers will no longer be held up, because they were being hurt very badly by Canada, Trump said.

Trump said the U.S. has agreed to readjust its tariff rates on Canadian autos but didn't specify by how much.

The current headline tariff rate is 25 per cent on Canadian automobile imports, a levy that caused significant economic dislocation, plant closures (new window) and lost jobs (new window), particularly in Ontario, Canada's industrial heartland.

They were paying a high number, we're reducing it a little bit, Trump said of auto tariffs. You gotta give something.

While there are outlines of an agreement, Trump said that it's still subject to finalization of documents.

Carney sees 'significant progress'

Canada-U.S. Trade Minister Dominic LeBlanc met with U.S. Trade Representative Jamieson Greer in Washington on Wednesday morning for more talks.

Speaking briefly to reporters on his way out of the roughly 30-minute long discussion, LeBlanc answered a question about whether Canada's supply-managed dairy sector, long targeted by U.S. negotiators, will be affected by the terms of this prospective agreement.

WATCH | Canadian, U.S. negotiators answer questions:

Greer and LeBlanc speak to reporters as trade talks continue

Speaking to reporters after a meeting in Washington, United States Trade Representative Jamieson Greer said Canada and the U.S. have 'eliminated some of the irritants we've had over the past year.' Canada-U.S. Trade Minister Dominic LeBlanc said he is 'very confident' in discussions about the dairy sector.

The prime minister was very clear, we need to protect supply management. We need to ensure that the supply management regime remains entirely intact and I'm confident that that's the case, LeBlanc said.

A spokesperson for LeBlanc said the minister is headed back to Ottawa to meet with Carney and take other meetings necessary to finalize trade negotiations.

Greer framed the forthcoming deal as a win-win.

We've reached an agreement that will not only continue to protect American workers, American jobs, American supply chains, but really strengthen the North American economy and create a situation where North America will continue to be an energy powerhouse, a manufacturing powerhouse, he told reporters gathered outside his office.office.

The details of what exactly has been brokered — if anything — are scant.

Neither side released any documents stating what each country could give up in return for some concessions.

Beyond Greer's assertion that there will be changes to some Canadian policies, Trump alluded to a possible revival of the Keystone XL pipeline, a long-defunct project that could carry oil from Alberta to the U.S. Gulf Coast. Trump already signed an executive order in April authorizing the construction (new window) of a similar cross-border pipeline.

WATCH | Trump's order revives parts of pipeline:

Trump signs order to revive parts of cancelled Keystone XL pipeline

U.S. President ‌Donald Trump has signed an order authorizing a proposed project to transport Canadian oil across the border as part of an effort to revive parts of the cancelled Keystone XL pipeline. South Bow, the Canadian company behind Keystone XL, is partnering with U.S. company Bridger Pipeline on the proposed project.

The Americans have long demanded U.S. liquor be put back on the shelves of provincially run stores, ending a boycott that has been devastatingly effective (new window). The Trump administration is also pushing for Canada to remove its retaliatory tariffs on U.S. autos and to change how the supply-managed dairy sector allocates quotas.

LeBlanc, meanwhile, has pushed for the U.S. to scrap the threatened 50 per cent levies, called the Section 338 tariffs. He also wants the country to lower the existing Section 232 fees on industrial products like steel, aluminum, autos and lumber.

Carney said his government is working on a deal that will address outstanding trade issues and deliver greater certainty and real benefits for Canadian businesses, workers, farmers and families.