The US, meanwhile, has been asking for a number of concessions from Canada, including removing its remaining retaliatory tariffs on American autos and adjusting its dairy quotas to allow greater access for US cheese producers.

Asked on Wednesday if the latest deal will include significant concessions on dairy, Minister LeBlanc said that Canada’s dairy supply management programme – which oversees production quotas and sets pricing and import quotas on dairy, eggs, and poultry – will remain “entirely intact”.

Polls suggest that a majority of Canadians would be unhappy if the Carney government made significant concessions to the US, with 56% surveyed by polling firm Leger, external saying they want Canada to take a hardline approach.

But business organisations from both sides of the border have lobbied for a deal to be reached, cautioning that additional tariffs between the two trading partners would be harmful for both countries.

Dennis Darby, president of Canadian Manufacturers and Exporters and a member of Carney’s advisory committee on Canada-US trade, told the BBC he is optimistic a finalised deal is on the horizon.

“The committee was informed this morning that the negotiations continue and that and we’re close, and that’s more positive than we’ve seen in some time,” Darby said.

He added that businesses hope this will be the first step towards a return to the terms set under the North American free trade agreement, known as USMCA, with most goods flowing tariff-free through Canada, the US and Mexico.

Additional reporting by Peter Hoskins