US-Canada Agreement to Avoid Tariffs on Canadian Products

A deal between the U.S. and Canada, aimed at preventing the imposition of tariffs on Canadian products, has been proposed to President Donald Trump, according to sources cited by Politico.

The decision to apply a 50% tariff now depends on Trump, who must decide by midnight. Intense discussions between American and Canadian officials have taken place in recent days, with the U.S. demanding that Canada abandon previously adopted retaliatory measures, while Ottawa seeks to reduce tariffs on vehicles.

The proposed agreement could include concessions from Canada regarding dairy products, a frequently mentioned issue by Trump. Negotiators hope that a limited agreement will facilitate broader discussions regarding a new North American trade agreement.

However, the auto sector remains a sticking point, and the impending tariffs, although affecting a small percentage of trade, could compromise nearly $1 trillion in bilateral trade negotiations.