08:05 AM EST, 03/06/2025 (MT Newswires) -- Canada-United States trade negotiations will be ongoing, but Scotiabank said it remains skeptical that markets will see "material traction."

There was no progress after hours Wednesday. The collapse of the auto sector has been postponed or avoided, but the two sides are probably at an impasse, according to the bank.

The U.S. administration keeps dangling the threat of more tariffs on April 2 and so why would Canada reverse its retaliatory measures now, asked Scotiabank. The U.S. has only offered a 30-day suspension of auto tariffs, which it had to do in order to avoid almost immediate plant closures rippling across North Aamerica.

There is loose U.S. talk of possibly suspending or exemption a few agricultural tariffs, like potash, since hitting fertilizer prices would slam President Donald Trump's agrarian base into spring plantings and cause crop yields to plummet and food prices to soar, stated the bank.

If Canada were to relax some measures, then there are zero assurances that the U.S. wouldn't keep theirs or increase the tariffs and other antagonistic measures. This isn't a U.S. administration that is even remotely trusted in Canada, pointed out Scotiabank.

Canada's stance has to be to dig in, added the bank. To not accept any U.S. tariffs. To take the hit up front in order to avoid ruining the economy for the long-term and to avoid being pushed into a bad agreement for many years or decades.