Washington, Aug 21 (V7N) – The United States and Canada were headed back to the negotiating table on Friday seeking a deal to end months of trade tensions, with Canadian negotiators working to finalize an agreement before a new round of punishing US tariffs takes effect.

President Donald Trump had threatened to impose 50 percent duties on a range of Canadian products but issued a last-minute delay, citing progress in trade talks . The temporary pause, announced late Tuesday, gave both sides additional time to negotiate a comprehensive agreement .

Canadian negotiators have been camped out in Washington this week, reportedly aiming to address multiple flash points . Both sides have signaled that a pact is nearly complete, with top Canadian negotiator Dominic LeBlanc meeting US Trade Representative Jamieson Greer on Thursday and telling reporters, "we're very close" .

Canada is seeking relief from Trump's tariffs on autos, steel and aluminum, which have battered the country's economy, forced job losses and strained the historically strong trade relationship . Details of the proposed agreement emerged this week, with reports suggesting the deal could lower the US tariff on Canadian-made vehicles from 25 percent to 15 percent and halve steel and aluminum tariffs .

One of the most contentious issues has been the Canadian provincial bans on US alcohol, which were imposed in retaliation for earlier US tariffs . The bans have particularly irritated the Trump administration, with the White House citing them as a key reason behind the tariff threat . Prime Minister Mark Carney has asked provinces to restock US alcohol as a gesture of good faith .

Provincial leaders have offered mixed responses to Carney's request. Nova Scotia Premier Tim Houston has signaled willingness to comply, while Manitoba Premier Wab Kinew expressed skepticism, describing the United States as appearing "weak" and suggesting Canada should hold its ground . Ontario Premier Doug Ford, a prominent critic of Trump during the trade war, has remained publicly quiet on the matter .

Carney has repeatedly told Canadians that relations with the United States have been forever changed, regardless of the outcome, and that the country needs to diversify and reduce its reliance on its southern neighbor. The United States remains Canada's largest trading partner by far, accounting for roughly 70 percent of Canadian exports .

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