Carney to meet Trump again at the White House to jumpstart trade talks
Prime Minister Mark Carney is traveling to Washington next week to meet with U.S. President Donald Trump on Tuesday.
The meeting will be “a working visit,” according to a statement from the Prime Minister’s Office , focussed on security and trade.
It will come a few days after the U.S. president again spoke about Canada becoming the 51st state during a meeting with military generals in Virginia about his proposed “Golden Dome” missle defence system. Claiming Canada called him and expressed a desire to be part of it, he said: “‘Well, why don’t you just join our country? You become the 51st state and you get it for free.”
It will be Carney’s second visit to the White House since he took office.
The PMO statement says, Canada and the U.S. launched consultations last month in preparation for the first joint review of the Canada-U.S.-Mexico trade agreement (CUSMA). This week, Canada-U.S. Trade Minister Dominic Leblanc warned against expecting trade with the U.S. to revert to past patterns.
“ I do believe this is resolvable,” LeBlanc said at the Senate Committee on Foreign Affairs and International Trade on Thursday, but added “the relationship with the United States has fundamentally changed and it will not magically go back to what it may have been a year ago or 25 years ago.”
He said Canada has a two-track strategy: sectoral deals for industries such as steel, aluminum or softwood lumber or a broader deal. “Both tracks are still in discussions.”
Canada has been holding talks for months with the U.S., with the aim of removing or lessening tariffs on Canadian goods.
In late June, Ottawa rescinded a tax on big U.S. tech firms at Trump’s request. A self-imposed, joint deadline to reach a deal came in July, then shifted to August. In September, Ottawa dropped retaliatory tariffs to try to advance talks.
But the talks seem to have stalled.
Meanwhile, since returning to the White House this year, Trump has imposed tariffs on vulnerable Canadian sectors: 50 per cent on steel and aluminum, 25 per cent on autos – with a carveout for U.S. parts – and 35 per cent on any goods not covered under CUSMA.
On Sept. 30, Trump imposed a new 10-per-cent tariff on softwood lumber raising the total levy to more than 45 per cent. And, as of Oct. 14, upholstered furniture, kitchen cabinets and bathroom vanities will face new tariffs of 25 per cent.
While other countries including the U.K. and European Union have landed agreements with the U.S. by saying yes to a set rate of tariffs on all their exports into the U.S, LeBlanc said Canada will not accept a deal with a baseline tariff.
Carney has repeatedly argued that Canada has the best deal with the U.S. because 85 per cent of Canada’s exports to the U.S. are tariff-free. Instead, he is aiming for relief for industries such as aluminum, lumber and autos.
And as time passes without a deal, pressure is mounting by the Conservative opposition to achieve results. Carney has said he’s in regular talks with Trump, including over text message. This meeting will be a chance to advance talks in person.
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