WASHINGTON — Canada-U.S. Trade Minister Dominic LeBlanc left Washington on Wednesday feeling optimistic about recent discussions with U.S. Commerce Secretary Howard Lutnick. LeBlanc's office reported that the two officials met for approximately 90 minutes on Tuesday, focusing on specific proposals and issues that have been raised in ongoing negotiations.

Following this meeting, further discussions will continue between Canada’s Ambassador to the U.S., Kirsten Hillman, who also serves as Canada’s chief negotiator, and U.S. Trade Representative Jamieson Greer. This development comes after Prime Minister Mark Carney announced on August 22 that Canada would eliminate some retaliatory tariffs to facilitate negotiations aimed at alleviating the impact of U.S. tariffs on key Canadian industries.

Canada has faced significant tariffs on steel, aluminum, automobiles, and copper. LeBlanc noted that these counter-tariffs have been a major point of contention in discussions with the Trump administration regarding a new economic and security relationship. In response to initial tariffs imposed by Trump in March, Canada enacted 25 percent tariffs on a wide range of American products, including oranges, alcohol, and motorcycles.

The Trump administration has implemented tariffs on numerous countries as part of its trade realignment strategy, with Canada and China being the only nations to retaliate with their own tariffs. On August 1, Trump increased tariffs on Canada to 35 percent, citing concerns over the flow of fentanyl and Canada’s retaliatory measures as reasons for the hike.

These tariffs do not apply to goods that comply with the Canada-U.S.-Mexico Agreement (CUSMA). Canada plans to align its tariff exemptions with CUSMA, effective September 1. However, the counter-tariffs on steel, aluminum, and automobiles will remain in place. While Canada’s automobile tariffs generally match those of the U.S., its tariffs on steel and aluminum remain at 25 percent, even as the U.S. raised its rates to 50 percent in June.

Carney has emphasized that Ottawa's goal is to see a reduction in Trump’s tariffs on steel, aluminum, automobiles, copper, and lumber. In a statement made in Latvia on Tuesday, Carney said, "in order to do that … we will have to look at other areas where we can have win-win cooperation."

LeBlanc has indicated that he is discussing a "package of stuff" with American officials, which may include investment opportunities in sectors such as defense and security.