Prime Minister Mark Carney revealed on Wednesday that negotiations are underway between Canadian and American officials to finalize a deal on tariffs following his recent meeting with the U.S. president. Carney assured that Canada stands to benefit from the agreement, emphasizing that the country already has favorable trade terms with the U.S., with most products being sold tariff-free despite previous trade actions by the Trump administration. Carney expressed optimism about securing an even stronger deal as negotiations progress.
While the initial focus of the discussions is on sectors like steel, aluminum, and energy, Carney mentioned efforts to address issues related to auto tariffs and the forestry sector. Specifically, he highlighted the importance of reaching a satisfactory agreement on softwood lumber. Although Carney left Washington without a finalized deal, Trade Minister Dominic LeBlanc continued discussions with U.S. counterparts to iron out the details.
Carney acknowledged the challenges faced by certain Canadian industries due to sectoral tariffs imposed by the U.S. He emphasized the need for specific progress in resolving trade disputes and reiterated that bilateral deals would play a significant role in shaping future trade relations, alongside existing agreements like the Canada-U.S.-Mexico Agreement (CUSMA).
Reflecting on the evolving dynamics of Canada-U.S. relations, Carney emphasized a shift away from a model of deep integration with the U.S., noting that the current approach involves pursuing mutually beneficial deals while maintaining Canada’s economic independence. He highlighted the importance of Canadian initiatives promoting domestic consumption and investment as positive steps towards self-reliance.
The discussions also touched on potential investments by Canadian pension plans in the U.S., with Carney underscoring the significance of private sector decisions in driving economic growth. Carney’s commitment to enhancing economic ties with the U.S. drew criticism from Conservative Leader Pierre Poilievre, who raised concerns about potential concessions made by Canada during negotiations.
Furthermore, Carney’s engagement with U.S. President Trump included discussions on reviving the Keystone XL pipeline project, a move that could align with Trump’s energy priorities and benefit both countries economically. Alberta Premier Danielle Smith praised Carney’s approach as resonating with Trump’s preferences, potentially leading to improved relations and successful outcomes in trade negotiations.
In response to varying opinions within Canadian political leadership, Carney emphasized the importance of building a positive rapport with the U.S. administration while also standing firm on Canada’s interests. The ongoing negotiations reflect the complexities of Canada-U.S. trade relations and the strategic considerations involved in securing beneficial agreements for both countries.