Canada tariffs explained: Greer says difficult issues remain after G20 talks

US Trade Representative Jamieson Greer said on October 1 that difficult trade issues with Canada remained unresolved as the G20 trade ministers’ meeting ended in Milwaukee. No bilateral deal was announced, and his remarks followed new US import restrictions on certain Canadian products that took effect two days earlier.

“The reality is there are a handful of outstanding issues that are quite difficult to resolve,” Greer told reporters, according to The Canadian Press. The agency also reported that he told Bloomberg earlier that day Washington was open to a deal but was “not inclined to go to zero tariffs”.

Did Canada and the US reach a trade deal?

The latest talks established that contact continued, without an announced settlement. Greer and Canadian International Trade Minister Maninder Sidhu had a brief conversation on September 30. Sidhu said he raised Canada-US trade and World Trade Organization reforms.

Greer confirmed technical discussions with Canada were continuing. He identified Canada-US Trade Minister Dominic LeBlanc as his main contact and said they spoke frequently. Sidhu’s conversation at the G20 therefore sat alongside an existing negotiating channel.

Which Canadian products face US import bans?

Reuters reported that US import bans covering Canadian alcoholic beverages, motorcycles and dairy products were implemented on September 29. Those restrictions were already operating when Greer spoke at the end of the Milwaukee meeting.

The White House’s September 8 fact sheet had announced targeted bans and specified September 29 as their start date. It separately set September 15 for changes to the products covered by existing tariffs. The measures concern certain covered goods, rather than every Canadian export.

The administration said Donald Trump used Section 338 of the Tariff Act of 1930. It also said the covered Section 338 tariffs apply to qualifying goods under the US-Mexico-Canada Agreement and apply in addition to Section 232 tariffs.

Has a new 50% Canadian auto tariff been announced?

A reporter asked Greer whether the US was holding technical talks with American automakers about imposing a 50% tariff on Canada’s auto sector on January 1 if there were no deal. His reported response focused on bringing manufacturing back to the United States.

That exchange did not announce the proposed tariff or confirm the premise of the question. It should be distinguished from the targeted import bans Reuters reported as already implemented.

Why Washington and Ottawa disagree

The White House described its September measures as a response to Canada’s treatment of American exports. Its fact sheet argued that Canada had maintained or increased discrimination against US commerce, including alcoholic beverages and dairy. That is the administration’s account of the dispute.

Canada’s August 28 statement gave a different explanation for the breakdown in negotiations. Ottawa said it suspended talks because the United States had proposed new terms that asked too much and offered too little, undermining Canadian workers, businesses and national interests.

In that announcement, Canada set September 8 for counter-tariffs of 15%, 25% and 50% covering C$27.6 billion in US imports. It listed sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Ottawa also announced C$7.5 billion in new and enhanced support for affected workers and businesses. These were earlier announced measures, not concessions secured at the G20. The announcement does not establish how much assistance had reached recipients by October 1.

Where Canada is looking for other trade partners

Sidhu’s G20 priorities included advancing a digital trade agreement with the European Union, negotiations with South American bloc Mercosur and an economic partnership agreement with India, The Canadian Press reported.

Reuters reported that Sidhu was due to meet Indian Commerce Minister Piyush Goyal on October 1 as both countries pursued an agreement by year-end. That report described a planned meeting, not its outcome or a signed deal.

“Every meeting at the G20 is a chance to open more doors for Canadian workers and businesses,” Sidhu said in a pre-meeting statement quoted by Reuters.

The India negotiations were already under way. Global Affairs Canada said on September 17 that three rounds had been completed and a fourth was taking place that week. It put Canada-India goods-and-services trade in 2025 at C$30.4 billion.

Canada’s stated goals include doubling exports to markets beyond the US over the next decade and doubling two-way trade with India to C$70 billion annually by 2030. Those are targets, not evidence that other customers have replaced American demand.

What remains unresolved

Greer challenged the prospects for replacing US demand, telling reporters that Canada and the European Union were low-growth markets. Canada, meanwhile, continued to present negotiations with other partners as opportunities for its workers and businesses.

The immediate sequence is clear: import restrictions took effect on September 29, ministers spoke on September 30, and Greer confirmed on October 1 that obstacles remained. Neither the Canadian Press nor Reuters reporting establishes a bilateral settlement or a timetable for removing those restrictions.