Prime Minister Mark Carney stated that U.S. President Donald Trump has not signaled any intention to withdraw from the North American free trade agreement established during his initial term in office. Carney had a private meeting with Trump and Mexican President Claudia Sheinbaum in Washington during the FIFA World Cup draw earlier this month. The discussion mainly focused on the upcoming talks regarding the Canada-U.S.-Mexico Agreement (CUSMA), scheduled for review in 2026. While potential timelines were discussed, no specific deadlines were set during the meeting.
U.S. Trade Representative Jamieson Greer recently suggested the possibility of the U.S. pursuing separate agreements with Canada and Mexico or potentially exiting the deal altogether. However, Carney emphasized that in his private conversations with Trump, there was no mention of such drastic actions. Greer mentioned that various options, including exiting, revising, or renegotiating the agreement, are being considered.
In a report presented to the U.S. Congress, Greer emphasized the importance of keeping negotiation options open to resolve identified issues before recommending a renewal of the agreement. Despite Trump’s previous threats to withdraw from NAFTA and his similar comments about CUSMA, Carney clarified that their discussions focused on reviewing and adjusting the agreement rather than completely abandoning it.
Although the trade deal is in place, the U.S. continues to impose significant tariffs on Canadian exports, including steel, aluminum, lumber, automotive products, and kitchen cabinets. Carney, who won the federal election in April, has taken steps to accommodate the U.S. administration, such as retracting a digital services tax and eliminating retaliatory tariffs on American goods. However, negotiations to remove some U.S. sectoral tariffs have not yet yielded a deal.
Carney defended his trade record, highlighting Canada’s advantageous tariff exemptions under CUSMA compared to other countries facing American tariffs. Despite ongoing efforts to improve trade relations, discussions to reduce steel and aluminum tariffs were halted by Trump in response to an anti-tariff ad campaign by the Ontario government. Trade Minister Dominic LeBlanc expressed readiness to resume talks with the U.S. during the CUSMA review, indicating a possible opportunity for further engagement in trade discussions.
Carney stressed the importance of addressing sectoral tariffs in the CUSMA negotiations, emphasizing the significance of free movement of key goods across borders for the U.S. economy. The prime minister highlighted the necessity for the U.S. to consider its competitors, whether viewing Canada or China as the primary economic rival. The full interview with Prime Minister Mark Carney can be watched on Rosemary Barton Live this Sunday, starting at 10 a.m. ET.