U.S. and Canadian negotiators met in Washington for a third day on Friday, racing against a midnight deadline to finalize a trade deal. The discussions aim to avert the imposition of stiff new American tariffs, including 50% levies on billions of dollars of goods, which are due to come into effect on Saturday.
The negotiators have haggled over the scope of tariffs on metal imports in a bid to stave off the new duties and improve the terms of existing ones. Businesses have warned that the 50% duties could cripple their sales if they take effect. Despite these efforts, experts say that even a last-minute breakthrough will not result in the U.S. lifting all tariffs on Canadian goods.
Mark Carney is taking an unprecedented approach by accepting that President Donald Trump can impose tariffs despite the terms of the North American trade pact. While this strategy is part of the effort to reach a deal, Carney faces a tough sell back home.