Prime Minister Mark Carney has indicated that the U.S. is likely to maintain targeted tariffs on specific sectors despite the recent renegotiation of the Canada-U.S.-Mexico Agreement on trade. Trade Minister Dominic LeBlanc returned from Washington following a week of discussions with a commitment to continue talks.
During a visit to the White House alongside President Donald Trump, Carney received positive feedback from Trump regarding the talks. However, LeBlanc’s update on social media later stated that no deal has been reached yet.
Carney mentioned that ongoing discussions will continue in Washington in the days ahead to find trade resolutions benefiting both countries. The negotiations to update the Canada-U.S.-Mexico Agreement are scheduled to commence next year, but Carney expressed doubts about resolving all outstanding issues.
The Prime Minister emphasized that certain sectors such as steel, aluminum, autos, forest products, and pharmaceuticals are deemed strategic by the U.S., leading to trade actions against global partners. He explained that efforts are concentrated on addressing sectoral tariffs, which are anticipated to persist even after the agreement’s revision.
Trump’s remarks during the Oval Office meeting hinted at the continuation of tariffs on Canadian goods due to historical trade practices. He also raised the possibility of renegotiating the trilateral trade deal or pursuing alternative agreements that could benefit individual countries.
The majority of Canadian trade with the U.S. is currently tariff-free under the Canada-U.S.-Mexico Agreement. Mexican President Claudia Sheinbaum emphasized that while not all trade meetings need to involve all three countries, the agreement is legally binding and requires a comprehensive review for any modifications.
Overall, uncertainties remain regarding the future of trade relations between the U.S., Canada, and Mexico despite ongoing discussions and negotiations.