Prime Minister Mark Carney revealed that he engaged in discussions with U.S. President Donald Trump on Monday, indicating that the removal of American tariffs causing economic strain on key Canadian sectors may not happen in the immediate future. This talk coincided with the lifting of most of Canada’s retaliatory tariffs on U.S. goods, a gesture aiming to prompt Trump to eliminate tariffs on steel and aluminum industries. Carney described the conversation with Trump as productive, covering various topics such as trade, geopolitics, labor, and more.
Carney mentioned that Michael Sabia, the new clerk of the Privy Council, is currently in Washington, D.C., meeting with American counterparts. Although immediate progress regarding critical sectors is not expected, Carney emphasized the ongoing dialogue and efforts in this regard. The news of this discussion was unexpected, as the Prime Minister’s Office did not release any summaries of the conversation initially. The PMO clarified that Carney and Trump maintain regular communication for the benefit of workers, businesses, and all Canadians.
In response to the recent developments, Conservative Leader Pierre Poilievre criticized Carney for removing duties on U.S. goods, labeling it as a surrender. Poilievre expressed his approach, suggesting that if the Conservatives were in power, they would have negotiated with Trump to remove tariffs reciprocally.
As Carney and his cabinet convene for extensive meetings before the House of Commons resumes, the unresolved trade tensions and the upcoming review of the Canada-U.S.-Mexico Agreement (CUSMA) remain pivotal. The focus also shifts towards the upcoming budget discussions within the inner circle, which were postponed from spring to October due to the federal election. Carney, who campaigned on balancing the budget over the next three years while committing to increased defense spending and infrastructure projects, described the upcoming budget as a blend of austerity and investment, achievable through disciplined financial management.
