A potential trade deal between Canada and the United States could be reached within days, possibly before next week's G7 summit.The speculation gained momentum Wednesday as US Ambassador Pete Hoekstra spoke to Toronto’s business community. This comes despite the Trump administration doubling tariffs on Canadian steel and aluminum to 50%.Multiple sources told the Toronto Sun that an agreement is close. "It will be before the G7, perhaps as early as next week," said one well-placed source.Talks between the Trump administration and Prime Minister Mark Carney’s government have continued since the Liberals won the federal election. .These discussions build on negotiations ongoing since Trump took office in January."Ottawa knows what they need to do," remarked another attendee after Hoekstra’s speech to the Empire Club. "I am optimistic about where this relationship is," said Hoekstra. "I’m more optimistic about where I believe this relationship is going." He told the audience to remember Trump’s core priorities, which are prosperity, security, and safety.“That is the agenda, the transformative agenda that Donald Trump is pushing – prosperity, security, and safety. That is good for America and that is good for our neighbours to the north,” said Hoekstra.“The more prosperous we are, the more safe we are, the more secure we are, you will also feel the same.”.However, Hoekstra’s speech and later discussion with former Conservative cabinet minister Lisa Raitt offered few concrete details. This left many attendees disappointed. "That was not reassuring," said one attendee. "It was gaslighting," said another attendee.Sources suggest Hoekstra’s cautious approach might come from recent events. Hoekstra previously declared talk of Canada becoming the “fifty-first state" over, only for Trump to mention it again last week. Hoekstra might also be aware that a deal could be imminent..Despite the fresh tariffs, government sources believe a pre-G7 agreement is possible. "There is a hopeful scenario in which there could be a deal, but the next 48 to 72 hours will be crucial," a top Ottawa source told the Toronto Sun. Provincial sources also acknowledged a deal could be near "if the stars align."The G7 leaders meet in Kananaskis, Alberta, from June 15-17. Securing a deal before then would be a major achievement for the new Carney government. It will not be a full renegotiation of the Canada-US-Mexico Agreement (CUSMA). Instead, it will outline broad principles for a new trade framework..Highly contentious issues like Canada’s dairy supply management system are expected to be deferred to future, more detailed talks. One immediate hurdle is Canada’s proposed digital services tax. This tax targets large foreign tech companies. It has angered lawmakers in Washington. The first bills are expected this month. The Carney government also introduced the Strong Borders Act..This legislation aims to tackle auto theft, drug smuggling, and human trafficking. Observers suggest it signals Ottawa is taking border security seriously for US counterparts. A significant defence spending announcement is also anticipated soon. This aligns with US security concerns, including Trump’s missile defence system known as the Golden Dome."The target from the Carney team is to have a deal before the G7," a source reiterated. With the summit just days away, sources indicate intense efforts are underway. They predict negotiators will roll up their sleeves. The bottom line is to expect a potential deal announcement with the US within the next two weeks.
