As the deadline for U.S. President Donald Trump’s latest tariffs approaches, negotiations between Canada and the U.S. have not yet led to a satisfactory tariff agreement, as per two informed sources. The sources revealed that the U.S. presented a new proposal on Tuesday aimed at reducing some sectoral tariffs, but it fell short of the expectations of the Canadian side. The sources, who spoke on condition of anonymity, mentioned that discussions have been ongoing to strike a deal before the impending deadline on August 19, which would see a 50% levy imposed on numerous Canadian goods in addition to existing sectoral tariffs.

The U.S. is pushing for a deal that would grant them favorable access to Canadian critical minerals and encompass security and energy aspects, according to insiders. Canadian Trade Minister Dominic LeBlanc has held multiple meetings with U.S. Trade Representative Jamieson Greer in Washington recently, with the aim of presenting a potential trade agreement to Trump by Monday.

Sources disclosed that Canadian officials have strongly emphasized to their American counterparts that if the August 19 tariffs are implemented, there would be little support from the Canadian public to continue negotiations. Both sides have committed to daily meetings at various levels leading up to the deadline.

Following their meeting with Greer, neither LeBlanc nor Canada’s chief trade negotiator, Janice Charette, provided comments to the press. LeBlanc later stated that discussions are ongoing and that they will persist in engaging at the negotiation table. LeBlanc and Charette are also seeking relief from the tariffs imposed by the U.S. on Canadian steel, aluminum, lumber, and automobiles.

Additionally, Canada hopes that the ongoing trade discussions will result in the renewal of the Canada-U.S.-Mexico Agreement (CUSMA) after the Trump administration declined to extend the deal beyond 2036 last month. The U.S. has cited various trade issues, including Canada’s response to U.S. trade policies, such as the removal of U.S. alcohol from provincial stores, and alleged discrimination against U.S. motor vehicles and dairy products, as reasons for the tariff escalation.

Conservative Leader Pierre Poilievre urged Carney to take a firm stance in the negotiations, advocating for a comprehensive deal that includes the elimination of tariffs on softwood lumber, an end to sectoral tariffs on steel and aluminum, a tariff-free auto pact, and full exemption from Buy America regulations in infrastructure projects at all government levels. Reports suggest that Canada is considering meeting some of the U.S. demands, like lifting the alcohol bans, in exchange for tariff relief.