By Paul Vieira
OTTAWA--Canada's minister in charge of U.S.-Canada trade will head to Washington Friday for talks on the pending White House review of the existing trilateral North American trade pact.
A spokesman for Dominic LeBlanc confirmed his trip, which will mark one of the first face-to-face discussions on trade in about five months between senior White House officials and senior Canadian cabinet ministers. Talks between Ottawa and Washington last fall on a pact to either reduce or scrap tariffs on certain Canadian sectors fell apart amid President Trump's displeasure with anti-tariff advertising on U.S. airwaves paid for by the province of Ontario.
LeBlanc had signaled last week a meeting with U.S. Trade Representative Jamieson Greer was in the works. Efforts to revitalize trade talks between Ottawa and Washington are unfolding as the Canadian economy continues to struggle under the weight of hefty tariffs of up to 50% on key sectors such as steel, aluminum and motor vehicles. Trade tension has escalated between U.S. and Canada since mid-January, after Prime Minister Mark Carney struck a deal with China that lowers tariffs on Chinese-made electric vehicles and delivered a speech in Switzerland that was widely interpreted as a rebuke of the Trump administration's trade and foreign policy.
Trump has issued trade threats against Canada this year, among them a vow to prevent the opening of a new bridge linking Detroit with Canada. One trade row targeting Canadian aircraft was largely resolved last month.
Greer has characterized initial trade talks with Canada as challenging, while framing Mexico's approach as pragmatic. Greer told Canadian media last week that the U.S. is keen to renew the trade treaty, known as USMCA, so long as Canada is prepared to accept higher tariffs on its U.S. exports and increased access for U.S. dairy producers to the Canadian market.
A USTR report this week identified Canada's rules limiting foreign dairy products, and Ottawa's treatment of U.S. digital and streaming platforms as notable irritants in the trading relationship. Trade analysts expect the Trump administration to press Canada for further concessions to keep USMCA in place.
The majority of Canada's exports have entered the U.S. duty free due to an exemption available under USMCA. That exemption will still apply under President Trump's new global tariff of up to 15%.
The Bank of Canada has identified the USMCA review as a key economic risk, signaling that the rate outlook hinges on how talks proceed between the three North American countries.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
03-05-26 1251ET
