(Bloomberg) — Prime Minister Mark Carney and US President Donald Trump are expected to talk “over the next number of days,” a Canadian official said, after the two governments failed to reach a deal before an Aug. 1 tariff deadline.
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“We think there is an option of striking a deal that will bring down some of these tariffs and provide greater certainty to investment,” Dominic LeBlanc, Canada’s minister in charge of US trade, said on CBS’s Face the Nation on Sunday. LeBlanc also said he plans to speak with US Commerce Secretary Howard Lutnick.
The Trump administration on Friday raised the tariff rate on some Canadian imports to 35% from 25% imposed in early March, while maintaining an exemption for goods traded under the rules of the US-Mexico-Canada trade agreement.
The effective US tariff rate on Canadian products is estimated to rise slightly to between 6% and 7%, from about 5%.
Carney and his government have described the talks with the US as difficult.
LeBlanc on Sunday said talks have been “informative, constructive and cordial,” and reiterated mutual benefits for both economies from reaching a deal.
“What we’ve said to our American counterparts is how can we structure the right agreement where we can both continue to supply one another in a reliable, cost-effective way that preserves jobs essential to the American economy and in Canada as well,” he said.
The minister touted his government’s One Canadian Economy Act as a Canadian version of Trump’s One Big Beautiful Bill, the tax-cut and spending plan the president signed in July.
Leblanc said the Canadian law seeks to ramp up investment in ports, pipelines and mines, “all of which offer huge opportunities to American business.”
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