President Trump’s administration has enforced a 35% tariff on Canadian goods not covered by the US-Mexico-Canada Agreement, straining the trade relations between US and Canada. Mark Carney, Canada’s Prime Minister, is expected to have a meeting with President Trump in the near future to tackle the issue as per Canada’s officials.Canada’s federal cabinet Minister incharge with US-Canada trade, Dominic LeBlanc, expressed some hope for the government and revealed some optimism while voicing hope for a new deal that could ease the conversations pushed further as emphasized by the US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer, still hoping for more wwith both economies.Washington’s frustration with Canada in fpendling control on fentanyl smuggling into the border has given rise to the latest set of tariffs. This move indicates a struggle to control the ongoing tariff use, one that has stemmed with Trumps recent reinstatement to office. The claim made by Prime Minister Carney still stands, mentioning that Canada leads sply with in g 1% of US fentanyl imports while still heavily trying to reduce the cross border trade.Now both parties believe that a compromise could be reached. On the other side of the aisle, LeBlanc explained, “We think there is an option of striking a deal that will bring down some of these tariffs and provide greater certainty to investment.” At this stage of the negotiations, all parties have a strong economic incentive to follow the debates of the two leaders.
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