U.S.-Canada Trade Deal Awaits APEC Summit Approval, Sources Confirm
The U.S.-Canada trade deal addressing tariffs on steel, aluminum, and energy is awaiting approval at the upcoming Asia-Pacific Economic Cooperation (APEC) summit, scheduled for October 29 in South Korea. Sources reveal that both Canadian Prime Minister Mark Carney and U.S. President Donald Trump are expected to discuss this critical agreement during the summit.
Trade Deal Overview
This potential trade agreement aims to provide relief for Canada’s metals sector, severely impacted by U.S. tariffs. Currently, the U.S. imposes:
- 50% tariffs on steel and aluminum
- 25% tariffs on automobiles
- 45% tariffs on softwood lumber
Negotiations to address these tariffs have intensified following a meeting between Carney and Trump on October 7. Despite progress on steel and aluminum, discussions on automobiles and softwood lumber remain unresolved.
Key Negotiators
The negotiations involve several high-ranking officials from both countries:
- Dominic LeBlanc – Minister responsible for Canada-U.S. trade
- Michael Sabia – Privy Council Clerk
- Kirsten Hillman – Canadian Ambassador to the U.S.
- Howard Lutnick – U.S. Commerce Secretary
- Jamieson Greer – U.S. Trade Representative
These discussions, held in Washington, could lead to a more formal agreement in the upcoming renegotiations of the United States-Mexico-Canada Agreement (USMCA) planned for next year.
Impact of Tariffs on Canada’s Economy
The ongoing trade tensions have significantly affected Canadian industries, particularly steel and aluminum producers. Tariffs imposed by the U.S. have brought forth calls for retaliatory measures from various sectors. However, Prime Minister Carney has advocated for continued dialogue rather than escalation.
Moreover, the potential revival of the Keystone XL pipeline project also features heavily in talks. Previously canceled under President Joe Biden, this pipeline is vital for transporting Canadian oil to U.S. refineries.
Next Steps
With the APEC summit approaching, key discussions between Carney and Trump could pave the way for vital agreements. While the Prime Minister’s Office has not confirmed formal meetings yet, the urgency of these negotiations remains clear. Carney will also address other pressing issues, including international trade relations with China.
As tensions and tariffs continue to shape the trade landscape, the outcomes of the APEC summit could significantly influence both Canadian and U.S. economic strategies moving forward.
