Carney calls Trump as Canada pushes for deal before new US tariffs hit

Canadian Prime Minister Mark Carney has spoken with US President Donald Trump as Canada races to avoid a new round of 50 percent tariffs on Canadian goods.

The two leaders spoke by phone on Monday afternoon and discussed “ongoing trade negotiations,” according to the Prime Minister's Office.

Carney described the negotiations as “very intense and delicate.”

Trump has threatened 50 percent tariffs on about US$20 billion worth of Canadian products, including cement and hockey sticks.

The measures are due to take effect just after midnight on August 19 unless the two countries reach an agreement.

The US Chamber of Commerce has urged both governments to continue negotiations, warning higher tariffs would hurt both economies.

“The introduction of higher tariffs would damage both economies, drive up costs for U.S. families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the U.S.-Mexico-Canada Trade Agreement,” senior vice-president Neil Herrington said in a statement Tuesday.

Meanwhile, Canadian and US officials are negotiating possible reductions to American tariffs on Canadian vehicles, Reuters reported.

Canada is seeking to reduce the current 25 percent vehicle tariff to 15 percent but negotiators remain divided over how North American content should qualify for lower rates.