Canada is making a last-ditch effort to negotiate with the US to avoid new 50% tariffs on goods worth about $20 billion. This was reported by Qazaqyia.kz citing Reuters.
Canadian Prime Minister Mark Carney held a phone call with US President Donald Trump. The Canadian prime minister's office said the politicians discussed ongoing trade negotiations, but did not disclose details of the conversation.
The new tariffs are set to take effect on August 19. They will affect Canadian imports worth approximately $20 billion and will apply even to some goods that previously enjoyed preferential treatment under the USMCA agreement.
One of the key obstacles in the negotiations remains US tariffs on Canadian cars. The current rate is 25%.
The sides are discussing the possibility of reducing it to 15%, with further reductions depending on the share of American components in the vehicle.
Washington proposes to count only parts made in the US, while Ottawa insists on including all North American components, including Canadian and Mexican ones.
Representatives of the Canadian auto industry believe that even a 15% rate remains too high. According to their estimates, before the tariffs were imposed, the industry's average profitability was about 6%.
Canadian negotiators continue consultations in Washington. Earlier, they held a nearly two-hour meeting with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.
Canadian business warns that the new tariffs could lead to job losses and plant closures, especially in the forestry, wine, and dairy industries.
The Canadian government has previously stated that if the tariffs take effect, it is considering various response options, including support for affected industries and a possible suspension of bilateral trade negotiations.