New York Construction Report staff writer
Canadian Prime Minister Mark Carney has asked provincial premiers to allow American companies to compete for provincial government contracts and lift restrictions on U.S. alcohol sales as Canada and the United States work to finalize a new trade agreement ahead of a looming tariff deadline.
Carney made the request during discussions with premiers Wednesday, as negotiators worked to reach an agreement that could avert additional U.S. tariffs on hundreds of Canadian goods, including cement, drywall, hardwood products and other construction materials.
The procurement issue could have direct implications for U.S. contractors and construction companies seeking work in Canada. Provincial restrictions on U.S. suppliers were among the retaliatory measures introduced after President Donald Trump imposed tariffs on Canadian steel, aluminum, automobiles and other products. The new deadline is 12:01 a.m. Saturday.
Trump announced Tuesday night that he would pause for three days planned additional 50% tariffs on hundreds of Canadian products while officials finalized the details of a proposed agreement.
“I have paused the 50% Tariffs against Canada, that were scheduled to kick in tomorrow morning for a three day period, based on the fact that Canada and the U.S.A., subject to the finalization of documents, have a DEAL!” Trump wrote on Truth Social.
Trump later told reporters in Washington that the pause had been granted at Canada’s request. He also raised the possibility of reviving the Keystone XL pipeline project, although details about its potential role in the negotiations remain unclear.
The additional tariffs, imposed under Section 338 of the Tariff Act of 1930, had originally been scheduled to take effect Wednesday. The current pause expires at 12:01 a.m. Saturday.
On Thursday Canadian officials said a deal is “close”, after months of trade tensions between the two countries. Provinces imposed restrictions on U.S. liquor sales and other retaliatory measures after Trump introduced tariffs affecting Canadian steel, aluminum and automobiles.
A failure to finalize the agreement before Saturday’s deadline could result in new tariffs on Canadian construction materials and other goods moving through cross-border supply chains.
