Canada, U.S. Seek Tariff Resolution Amid Ongoing Trade Tensions

U.S. President Donald Trump and Canadian Prime Minister Mark Carney are expected to speak in the coming days as both nations seek to ease escalating trade tensions. The talks follow Washington’s recent move to impose a 35% tariff on Canadian goods not covered under the U.S.-Mexico-Canada Agreement (USMCA).

Dominic LeBlanc, Canada’s minister in charge of U.S.-Canada trade, said on CBS News’ Face the Nation that he remains “encouraged” by ongoing discussions with U.S. officials, including Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. He noted that while progress has been made, a deal that best serves both economies has yet to be reached.

“We think there is an option of striking a deal that will bring down some of these tariffs and provide greater certainty for investment,” LeBlanc said, adding that Carney and Trump could find common ground to resolve the dispute.

The latest tariffs mark another escalation in a months-long trade conflict that began shortly after Trump returned to office. Washington has partly linked its decision to what it calls Canada’s failure to curb fentanyl smuggling into the U.S. The White House claims Canada plays a role in the opioid crisis, despite Carney stating the country accounts for only about 1% of U.S. fentanyl imports.

Carney stressed that Canada is working intensively with American authorities to reduce fentanyl volumes even further. The prime minister emphasized that strengthening economic ties and protecting bilateral trade remain top priorities, warning that continued tariffs could disrupt investment and job growth on both sides of the border.

With high-level talks anticipated soon, business and political leaders in both countries are watching closely for signs of a breakthrough that could bring relief to strained trade relations.