Canada and U.S. Resume Trade Talks for Third Time in a Year Amid Lingering Disputes
Ottawa and Washington are returning to the bargaining table for the third time in just over a year, seeking to stabilize their economic relationship after previous negotiations collapsed over truck tariffs, streaming rules, and retaliatory duties on $28 billion in goods.
Ottawa and Washington are heading back to the bargaining table for the third time in just over a year to secure a trade deal, aiming to stabilize an economic relationship that remains volatile despite renewed efforts. 
The current round of negotiations effectively rewinds to the status of August 2024, when Prime Minister Mark Carney withdrew from discussions at the 11th hour, less than 30 minutes before a tariff deadline. The proposed agreement at that time would have lowered U.S. tariffs on Canadian cars from 25 per cent to 15 per cent, with a carve-out for U.S. parts lowering the effective rate into single digits. It also would have reduced steel and aluminum tariffs from 50 per cent to 25 per cent, subject to a four-million-tonne quota above which tariffs would rise back to 50 per cent.
Several key sticking points caused the August collapse. Canada walked away in part because the United States refused to lower tariffs on medium- and heavy-duty trucks, a move that threatened the viability of Ford and General Motors plants in Ontario. Canadian officials claimed U.S. negotiators changed their minds on truck tariff relief at the last minute, while U.S. officials maintained that tariff relief for trucks was never on the table.
Another major dispute involved Washington’s push for changes to online streaming rules regarding the promotion of Canadian and French-language content by platforms like Netflix and Amazon Prime Video. Additionally, Canada’s chief trade negotiator Janice Charette stated that her team never saw the actual text of a proposal regarding future free-trade agreements, leaving it unclear whether the U.S. wanted consultation or sign-off on Canada's future deals with other nations.
Tensions escalated further in July 2024, when the Trump administration threatened additional 50-per-cent tariffs on around $28-billion worth of Canadian exports to pressure Ottawa into removing retaliatory tariffs. After the August talks collapsed, Washington implemented tariffs on $28-billion worth of Canadian goods, and Ottawa responded with countertariffs on a similar dollar value of U.S. products. Both countries have since adjusted their specific product lists.
An earlier round of negotiations had already collapsed in October 2024 after President Donald Trump withdrew in fury over a Government of Ontario anti-tariff television advertisement featuring Ronald Reagan.
It remains unclear whether the issues that sank the deal in August have been resolved, as the text of the proposed deal has not been made public.