Mark Carney directly negotiating with Donald Trump to end trade war

OTTAWA — Prime Minister Mark Carney is directly involved in the negotiations with U.S. President Donald Trump for a new trade and security deal in exchange for the lifting of all tariffs on Canadian goods — in particular the crippling levies on steel and aluminum. Ontario Premier Doug Ford told reporters at Queen’s Park on Thursday he spoke directly to Carney the day prior and said the prime minister is in “deep, deep discussions right now with the administration in the U.S. and President Trump.” In Ottawa, federal Industry Minister Mélanie Joly also confirmed the ongoing discussions. “First of all, we are for sure in a trade war. It’s normal that, at the same moment that this trade war is happening, there are also diplomatic discussions, so Prime Minister Carney and President Trump are talking,” she said in French during a brief media scrum. Trump signed an executive order this week doubling the tariffs on steel and aluminum — from 25 to 50 per cent — which is causing massive anxiety in Canadian sectors. So far, Carney said his government would take “some time but not much” to respond to Trump’s latest tariffs if the Canadian and American side do not arrive at a deal. “We are in intensive discussions right now with the Americans on the trading relationship. Those discussions are progressing,” he told reporters on Wednesday morning. Carney did not specify if he was directly involved in those “intensive discussions.” Ford reiterated that matching retaliatory tariffs need to happen as soon as possible should those talks fail, and said he conveyed that message directly to Carney on Wednesday. “The ideal situation is to get a deal, and if that deal does not happen in the next few days, then we have to slap another 25 per cent tariff on top of the existing 25 per cent tariff on our aluminum and steel,” Ford said. “But I think the prime minister is doing an incredible job of negotiating along with (Canada-U.S. Trade Minister Dominic) LeBlanc as well,” he added. LeBlanc was in Washington, D.C. on Tuesday meeting with U.S. Secretary of Commerce Howard Lutnick as Trump prepared to sign the tariff order on steel and aluminum. Ford said it was his understanding the federal government has been “working hard around the clock” to sign a deal with Trump and that it might be “right at the brink” of doing so. “Now, we know President Trump, he wakes up in the morning, he could change his mind, and we’ll be monitoring and discussing this with the prime minister on a daily basis until they get a deal, or they don’t get a deal,” he said. “If they don’t, we have to come out guns blazing,” he said. Meanwhile, Canadian steel company CEOS and union representatives were in Ottawa on Thursday to meet with federal ministers and officials to convince them to act fast before the inevitable job losses that could occur in the coming days and weeks. Joly, who met with them, said she was in “solution mode” and said her goal was to make sure to “support the sector” at such a critical time. “A lot of the conversation was about how we can make sure that we protect our domestic market, and we’re working on solutions. That’s why the industry and myself will continue to engage in the coming hours and days, because we need to get to a good plan together.” Finance Minister François-Philippe Champagne also said he was also looking forward to meeting with the industry, and said they were “all on the same page.” “We all want a very strong steel and aluminum industry in this country. They are committed. We are committed. We’re going to work hand in hand,” he said. The federal government has committed to use Canadian steel and aluminum in national infrastructure and defence projects in hopes of countering the lost revenue and drop in exports due to tariffs. But the industry is wondering if it will be able to survive until then. In order to speed up the process, the government is expected to table its “One Canadian Economy” bill on Friday which is expected to fast-track projects in the national interest. All 13 provincial and territorial premiers met with Carney over the weekend to discuss which of their projects, from ports and offshore wind development to oil pipelines and critical mineral mines, could potentially be selected for the government’s new process. The federal government is hoping the legislation will receive unanimous support from all parties to fast-track its adoption, but some in the opposition are reticent to the idea. Bloc Québécois House leader Christine Normandin said her party will want to study the bill in detail in parliamentary committees, which are not yet up and running. “For the interest of the population that we represent, we’re going to do the work.” National Post calevesque@postmedia.com

• Carney hints retaliation is coming after Trump's latest steel and aluminum tariffs
• Carney denounces 'unlawful and unjustified' doubling of U.S. tariffs on steel and aluminum

Get more deep-dive National Post political coverage and analysis in your inbox with the Political Hack newsletter, where Ottawa bureau chief Stuart Thomson and political analyst Tasha Kheiriddin get at what’s really going on behind the scenes on Parliament Hill every Wednesday and Friday, exclusively for subscribers. Sign up here. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our newsletters here.