LeBlanc Meets Greer as Wednesday Tariff Deadline Looms
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- Dominic LeBlanc scheduled a 4:30 pm EDT Sunday virtual meeting with U.S. Trade Representative Jamieson Greer, remaining in Washington alongside top negotiator Janice Charette through at least Monday
- The Wednesday deadline would impose a 50% duty on US$20 billion of Canadian electronics, dairy, alcohol, and wood products via Section 338 of the Smoot-Hawley Tariff Act, layered atop existing tariffs
- The U.S. is demanding a 15% tariff on Canadian autos with continued exemption for American content; Canada argues profit margins in single digits make even that level unviable for the deeply integrated cross-border supply chain
- On forestry, the U.S. is refusing to reduce Section 232 tariffs on the sector and instead pointed Canada to a separate Commerce Department review on softwood lumber that would not address the 232 duties
- Charette has told U.S. negotiators the Wednesday tariffs would represent a "cliff" in talks, with Canada preparing retaliation options if no deal materializes
- B.C. Premier David Eby and Ontario's Doug Ford conditioned returning American alcohol to store shelves on meaningful tariff reductions in autos and lumber
- Former Quebec premier Jean Charest, on Carney's advisory committee, said the Prime Minister faces "only bad choices," warning of a "strong response" from Canada if the Wednesday tariffs take effect
Why it matters: With the Wednesday deadline imposing a 50% tariff layer on US$20 billion of goods, Canada's auto and forestry sectors face the sharpest exposure — the industry itself says even a halved rate is unsustainable given single-digit margins — and Ottawa has already lined up retaliation, raising the risk of a deeper bilateral escalation before talks resume.
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