Trump admin reportedly not expecting to reach Canada tariff deal

Investing.com -- The Trump administration is reducing expectations for reaching an agreement with Canada before new tariffs take effect Wednesday, Bloomberg reported on Tuesday citing people familiar with the discussions.

US officials reportedly privately indicated that the chances of securing a deal on Tuesday are no better than a coin flip. The two countries face a midnight deadline before 50% tariffs on billions of dollars of Canadian goods would begin.

It remains unclear whether these signals reflect the actual state of negotiations or represent an attempt to gain leverage. President Donald Trump is scheduled to speak again with Prime Minister Mark Carney on Tuesday, the report added. The two leaders also held a phone call on Monday.

The US is said to have presented what officials described as their best offer to Canada. A call between Carney and Trump would serve as a final attempt to reach an agreement, though US officials consider even this outcome unlikely, the report noted.

Trump began his second term by imposing tariffs on Canada and Mexico and has suggested he would prefer to eliminate the North American trade agreement he negotiated during his first presidency.

Carney said he will keep all options available to respond to any new US tariffs, including trade retaliation. Canadian negotiators warned their US counterparts that implementing the Section 338 tariffs would trigger a public reaction in Canada and effectively end Carney's ability to negotiate on concessions.

The US could potentially delay the duties to allow additional time for talks, the report added.

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