Prime Minister Mark Carney emphasized on Monday that the ongoing trade discussions with the United States are currently in a critical phase as the deadline for an agreement approaches this Friday. Speaking at a press conference in Prince County, P.E.I., Carney stated that Canadians are seeking a resolution that is beneficial and reasonable for their country amidst the uncertainties surrounding the negotiations.
The Prime Minister’s remarks came after U.S. President Donald Trump hinted last week that a trade deal with Canada might not be achievable. Trump expressed some skepticism regarding the negotiations during a press briefing outside the White House, suggesting that a potential tariff could be imposed on Canadian goods without extensive negotiations.
The two nations have been engaged in talks to finalize a trade agreement before the impending deadline. Trump had previously warned Carney in a letter about the possibility of imposing a 35 percent tariff on goods not compliant with the Canada-U.S.-Mexico Agreement (CUSMA). This tariff would apply to Canadian exports currently subjected to a 25 percent tariff under Trump’s national security concerns related to fentanyl trafficking.
Moreover, Canadian steel, aluminum, energy, potash, and other goods have faced varying tariffs imposed by the U.S. government. Despite the challenges, Carney remains optimistic about the potential for reaching a deal by Friday, emphasizing the importance of standing up for Canadian interests during the negotiations.
While the U.S. President has utilized tariffs and threats to facilitate trade agreements with several countries, recent developments have seen the European Union (EU) successfully negotiate a deal with the U.S., resulting in a reduced tariff rate. Carney acknowledged that potential agreements with the U.S. might entail accepting some export levies, noting Canada’s advantageous position due to its energy exports.
As the negotiations continue, Carney highlighted the potential for collaboration between the United States and Canada on fair terms, emphasizing their past cooperation and the prospects for future mutually beneficial agreements.