Carney and Trump Hold 'Good Conversation' on Trade as Midterms Loom
Prime Minister Mark Carney and U.S. President Donald Trump spoke Saturday about reviving Canada-U.S. trade negotiations, though officials say a deal is unlikely before Tuesday's U.S. midterm elections due to unresolved disputes over autos, language rules, and future trade restrictions.
Prime Minister Mark Carney said he had a "good conversation" with U.S. President Donald Trump on Saturday regarding the future of Canada-U.S. trade, according to a spokesperson for the Prime Minister’s Office. Carney announced that negotiation teams from both countries will work in the coming weeks to deliver a mutually beneficial trade deal.
President Trump stated that his administration has the "concept" of a new trade deal with Canada but declined to offer specific details. Sources indicate that formal negotiations are set to begin again, with the auto industry expected to be a key sticking point, similar to previous failed talks.
The discussions come just days before the U.S. midterm elections on Tuesday, during which the trade dispute has featured heavily. Canadian government officials have informed industry groups that a trade deal is unlikely to be reached before the vote.
Previous trade talks collapsed in August, prompting both countries to impose steep duties on one another. Following the collapse, Trump imposed 50 per cent tariffs on Canadian goods and signed an executive order renaming Lake Ontario as Lake America.
Carney cited demands that would "destroy" major Canadian industries, including auto, steel, and aluminum, as reasons for walking away from the previous talks. He also pointed to issues regarding French language content rules and restrictions on Canada's future trade deals. U.S. officials have pushed back on Carney's claim that French language discoverability was a major sticking point, arguing the United States would not jeopardize a deal over it. Additionally, U.S. official Jamieson Greer denied that requirements restricting Canada's future trade deals existed in the text.
U.S. Commerce Secretary Howard Lutnick offered a different account of the August breakdown, claiming Canadian negotiators only raised tariff relief on medium- and heavy-duty trucks at the last minute to kill the deal. Canada's Chief Negotiator Janice Charette countered that they had raised the issue from Monday through Thursday.
Domestically, Conservative Leader Pierre Poilievre encouraged Carney to "get a great deal," while criticizing him for breaking promises made during the last election. Carney faces political pressure to deliver results ahead of a federal budget announcement, with a potential agreement carrying implications for family affordability and job creation.