LeBlanc ‘very confident’ of new deal after meeting with U.S. trade counterpart Greer

Dominic LeBlanc, the Canadian minister responsible for trade with the United States, emerged “very confident” on Wednesday from his meeting with U.S. Trade Representative Jamieson Greer, who stated that an agreement had been reached.

“We are now working to finalize the texts and documents,” said Greer, standing alongside Mr. LeBlanc.

He added that the U.S. Congress and labor unions would need to be consulted.

LeBlanc clarified that the “supply management system remains fully in place” when asked about possible concessions. He did not specify whether any changes were being made to dairy quotas.

“We have maintained our firm stance on protecting supply management, and I am very confident,” he said.

Prime Minister Mark Carney congratulated both LeBlanc and Greer for the “significant progress” made in the talks.

“Canada entered these discussions with the best overall trade terms. We are now moving towards an agreement that reinforces that Canadian advantage, including by securing the best terms in each of Canada’s most important strategic sectors and providing greater certainty about our future trading relationship,” he said in a social media post on Wednesday.

The meeting came about 12 hours after President Donald Trump announced a three-day reprieve from 50 per cent tariffs on a host of goods from Canada.

Trump said late Tuesday he had paused the latest tariffs — which had been set to take effect just after midnight on $28 billion of Canadian goods, ranging from hockey sticks and ice skates to honey and some dairy products.

Speaking to reporters outside the White House Wednesday, Trump said the deal would lift all of Canada’s tariffs on the U.S. but didn’t specify what exactly he was referring to.

“It’s all subject to finalization,” he said. “I think it’s a very good deal for both parties,”

In a Truth Social post Tuesday, the president pointed to a revival of the Keystone XL pipeline as being part of the deal, followed by a fictional image of him appearing to yank a piece pipeline from the ground beside a grave marker that says ‘Buried by Biden.’

Former U.S. President Joe Biden revoked a key permit for the pipeline, which would have carried more oil from Alberta into the U.S.

The new tariff deadline without a deal is 12:01 a.m. ET Saturday.

Trump threatened to impose those tariffs over Canada’s dairy supply management system, retaliatory tariff-free auto quotas and provincial bans on American alcohol in most provinces. 

A proclamation on the delay from The White House says Canada agreed to work toward resolving these trade irritants.

Prime Minister Mark Carney issued a statement late Tuesday saying “substantial progress” has been made and that more work remains.

“While we continue this work, Canada remains focused on building a stronger, more independent, and more competitive economy at home,” he said.

The prime minister’s statement did not mention Keystone XL.

Carney said the government is “loyal” to the supply management system earlier this month. 

A spokesperson from the Dairy Farmers of Canada said in an emailed response that they are not commenting at this time due to a lack of concrete details. 

The spokesperson said the position of the dairy sector remains the same and they want to see commitments in the Canada-United States-Mexico Agreement, known in Canada as CUSMA, upheld.

The U.S. Trade Representative said on social media the deal will include comprehensive market access for all American goods, economic security commitments and digital trade alignment.

Dan Darby, Canadian Manufacturers and Exporters Association CEO, welcomed the tariff pause, but said uncertainty on the future of both the 50 per cent tariffs and earlier duties on steel, aluminum and autos continue to harm Canadian businesses. 

Darby is a member of the prime minister’s advisory council on Canada-U.S. relations, and said the council received a brief update Tuesday night. 

“There was an update just last night saying ‘talks continue, stay tuned. We’ll let you know,'” Darby said in a phone interview.

Darby said any relief on the 50 per cent tariffs is a step in the right direction, but the manufacturing sector still needs to see movement on the steel and aluminum tariffs. 

Progress on those tariffs “will help take a bit of pressure off Canadian manufacturers and also perhaps provide some hope and some kind of stability,” Darby said.

The industry association CEO said trade uncertainty is “the killer of any business.”

“That’s the number 1 driver on why (Canadian manufacturers are) holding back on investment or holding back in hiring or even looking at other supply chains,” he said.

Chris Swonger, president and CEO of the Distilled Spirits Council of the United States, said the organization appreciates Trump wanting to restore access for American spirits products across Canada.

Several Canadian provinces pulled U.S. booze from store shelves last year after Trump imposed tariffs. The bans on U.S. liquor remain in place in all but Saskatchewan and Alberta.

“These provincial bans have caused exports of American spirits to drop by more than 70 per cent, leaving American distillers caught in the middle of a broader trade dispute,” said Swonger in a statement.

Trump returned to office set on changing Biden’s Keystone decision. Earlier this year, he signed an executive order for permits to revive parts of the project.

It’s not clear how much of the trade talks between Canadian and American officials focused on the energy project. Carney spoke with Trump by phone Tuesday, hours before the U.S. was to bring in the punishing tariffs.

Canadian officials were also looking to see relief on existing tariffs that target steel, aluminum, lumber and autos.