Ottawa and Washington Race to Avert Trade War

LeBlanc characterized the current negotiations as being "very close" to a resolution, though officials acknowledge that significant hurdles remain before a final text is signed. The urgency is driven by President Trump’s threat to impose massive levies on Canadian goods, a move that would fundamentally alter the North American supply chain.

Prime Minister Mark Carney is navigating a precarious domestic landscape. Recent polling reveals that a majority of Canadians oppose further concessions to the United States, even as the economic pressure intensifies. Despite this public pushback, insiders suggest that potential compromises are on the table, including a reduction of vehicle tariffs to 15% and a 50% cut to existing duties on steel and aluminum. Provincial leaders remain divided, with some demanding a firm stance against Washington to protect regional industries, while others fear the catastrophic impact of a full-scale trade collapse.