Kathmandu— President Donald Trump announced late Wednesday that he had reached a deal with Canada to avoid implementing threatened tariffs, initially stating the agreement would pause the tariffs for three days. However, this claim was quickly contested by Canadian officials, leaving the status of trade negotiations ambiguous and raising questions about the reliability of the reported arrangement. The dispute centers around US demands for access to Canadian resources and defense purchases, while Canada seeks to protect its sovereignty and economic interests.

Conflicting Accounts Emerge

Trump’s announcement came just before a midnight Washington D.C. deadline he had imposed on Canada to meet his demands; failure to do so would result in 50% tariffs on Canadian goods. Despite the President's claim of an agreement, Canada has disputed its existence, creating immediate confusion. The reality is that much of US-Canada trade already falls under the United States–Mexico–Canada Agreement (USMCA), and Canadian businesses have been preparing to comply with its terms.

US Demands Extend Beyond Trade

The US’s demands extend beyond simple tariff reductions, encompassing access to Canada's critical minerals, a commitment to purchase American F-35 fighter jets, and investment in US technology for missile defense systems. According to the Globe and Mail, Washington also seeks guarantees on future supplies of oil and gas. These requests have been met with resistance from Canadian leadership, who view them as infringements on national sovereignty.

Canada Strengthened by Dispute

Despite the pressure, the trade dispute appears to have galvanized Canadian unity and strengthened its resolve to diversify away from over-reliance on the US market. A recent Abacus poll indicates that 66% of Canadians believe Trump would not honor any agreement reached, highlighting a deep skepticism towards the US administration. The situation has also drawn attention to potential foreign interference in Canadian affairs, including alleged support for separatist movements.

Internal Trade Barriers Fall

The trade spat with the US has unexpectedly spurred internal changes within Canada, leading to the dismantling of provincial protectionist barriers and fostering free trade across the nation. Furthermore, a widespread “buy Canadian” movement has gained momentum, with reports suggesting limited demand for American products even if Trump’s demands were met.

As of Thursday morning, the details of any potential agreement remain unclear, and it is uncertain whether the tariffs will be implemented or if further negotiations will take place. The situation remains fluid, with both sides seemingly prepared to continue the dispute.

(With inputs from RT)

Originally published on abcnews.com.np.