• Canadian officials temper expectations for an imminent comprehensive trade agreement with the United States
  • Negotiations have narrowed to sector-specific deals focused on steel, aluminum, and energy
  • Despite high-level White House meetings, significant gaps remain with no immediate breakthrough announced

Canadian Intergovernmental Affairs Minister Dominic LeBlanc stated Tuesday that it's "overly optimistic" to expect a comprehensive Canada-U.S. trade deal within days, despite intensifying negotiations between the two neighboring economies. The comments came following Prime Minister Mark Carney's meeting with President Donald Trump at the White House, where trade dominated discussions.

While both sides have prioritized swift sector-specific agreements, particularly for industries most affected by U.S. Section 232 tariffs, LeBlanc's assessment suggests meaningful hurdles remain. "The talks have become increasingly detailed," said one official familiar with the matter, speaking on condition of anonymity, "but we're not measuring progress in days."

President Trump offered conflicting signals during his public remarks, suggesting possibilities ranging from renewing the trilateral North American free trade agreement (CUSMA) to establishing separate bilateral accords. However, the administration provided no specific timeline or framework for either approach, leaving Canadian negotiators to parse mixed messages.

LeBlanc has remained in Washington to continue technical discussions, focusing heavily on steel, aluminum, and energy sectors where tariff relief could provide immediate economic stabilization. Industry representatives from both countries have been pressing for resolution amid ongoing supply chain disruptions and pricing volatility.

A Canadian trade official, who requested anonymity to discuss sensitive negotiations, confirmed that sectoral agreements remain the most likely near-term outcome. "The comprehensive approach appears to have given way to more targeted solutions," the official said, noting that energy market dynamics and manufacturing supply chains require urgent attention.

The lack of immediate breakthroughs underscores the complexity of unwinding trade tensions that have persisted since the original CUSMA negotiations. Market participants had hoped the high-level meeting might yield clearer direction, but instead found themselves parsing ambiguous statements from both capitals.

When reached for comment, a spokesperson for LeBlanc's office would only confirm that "negotiations continue constructively" while declining to specify when the next round of talks would occur. The White House press office did not immediately respond to requests for clarification on the administration's preferred path forward.

Correction: An earlier version of this article misstated the timing of Prime Minister Carney's meeting with President Trump. The meeting occurred Tuesday, not Monday.