Canadian Prime Minister Mark Carney stated that Canada’s negotiating stance with the United States has been “quite tough,” and emphasized that trade negotiations with Washington remain “constructive,” despite the U.S. threat to impose a new 50% tariff on a range of Canadian imports starting August 19.US President Trump has threatened to impose a 50% tariff on a large number of Canadian imports starting August 19. “We still have time,” Carney said at a press conference in Toronto on Wednesday. “We are engaged in real, constructive negotiations on multiple issues.”
When asked whether Canada should change its strategy and take a tougher stance against the Trump administration, Carney said that now is not the time to adjust its course. He also pointed out that Dominic LeBlanc, the federal minister in charge of Canada-US trade, and Janice Charette, the chief trade negotiator, are in Washington, holding multiple meetings with their US counterparts to advance negotiations.
The two men also travelled to Washington last week to meet with U.S. Trade Representative Jamieson Greer. “I have also had dialogues with the U.S. side. But this is a negotiation, and now is not the time to change things,” Carney said. Trump’s threatened new tariffs would impose a 50% tax on multiple categories of Canadian goods. Unlike previous measures, this round of tariffs will not exempt products that comply with the Canada-United States-Mexico Agreement (CUSMA). The White House stated that this round of tariffs is a response to restrictions on alcohol, dairy supply regulations, and certain automobile quotas imposed by Canadian provinces.
Carney had previously stated that trade negotiations between Canada and the United States would be further accelerated. The tariff dispute initiated by the US president has lasted for more than a year. In early July of this year, Washington announced that it would not renew the current version of CUSMA as Canada and Mexico wished, but instead launched an unprecedented annual review process. Last month, LeBron told the Canadian Press that the annual review was fraught with uncertainty.
“We recommend introducing more structure and normativity into the review process initiated by the U.S.,” LeBron said. The annual review can be renewed annually, for a maximum of 10 years. If the three countries fail to reach an agreement on a follow-up plan, CUSMA will expire in 2036 when its current term expires. Canada hopes to eventually reduce tariffs on industries including steel and aluminium through bilateral negotiations with the United States.
The Globe and Mail reported that Canada is considering setting export quotas on steel and aluminium products in exchange for the U.S. lowering tariffs on those industries. The report cited anonymous sources and has not been independently confirmed by the Canadian Press. Carney declined to comment on the possibility of export quotas on Wednesday. “Now is not the time to activate these options, but we do have alternatives,” he said. LeBron’s office said the secretary also met with Jay Timmons, president and CEO of the National Association of Manufacturers, on Tuesday, and then met with Republican Senators Kevin Cramer (North Dakota) and Bill Hagerty (Tennessee) on Wednesday.