Prime Minister Mark Carney stated that Canadian trade negotiators are concentrating on discussions with their U.S. counterparts regarding “all strategic sectors,” including the automotive industry, as the deadline for U.S. President Donald Trump’s upcoming round of tariffs draws near. Carney expressed his aim for addressing “all 232s” during a housing-related event in Toronto. The Section 232 legislation has been utilized by Trump to impose most of his tariffs on sectors such as aluminum, steel, and auto parts, granting the U.S. president the power to implement tariffs to safeguard American industries based on a national security threat identified through a U.S. Commerce Department investigation.
Canada-U.S. Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette are currently in Washington for additional meetings this week. Carney emphasized his active involvement in these discussions. Reports from The Globe and Mail suggested talks between the two nations on steel and aluminum export quotas to reduce U.S. tariffs in those sectors, although two government sources disclosed to CBC News that this does not reflect the current negotiation status.
LeBlanc and Charette recently met with key U.S. figures, including Jay Timmons, CEO of the National Association of Manufacturers, and Republican senators Kevin Cramer from North Dakota and Bill Hagerty from Tennessee. It remains uncertain if LeBlanc will engage in further discussions with U.S. Trade Representative Jamieson Greer after their comprehensive talks last week.
Carney stressed the ongoing constructive negotiations on various issues and the necessity to address all strategic sectors and 232s. The looming Aug. 19 deadline has the U.S. planning to impose 50 percent tariffs on approximately five percent of Canadian exports, spanning goods from alcohol to hockey sticks to cement, as Greer justifies these potential tariffs as part of a broader strategy to reduce the U.S. trade deficit.
Carney labeled Canada’s response to the potential tariffs as needing to toughen up, hinting at possible actions leading up to the deadline. He mentioned discussions with Trump to intensify trade talks. Jean Charest, a former Quebec premier on Carney’s Advisory Committee on Canada–U.S. Economic Relations, highlighted increased U.S. administration engagement in talks following a phone call between the two leaders.
Carney did not rule out retaliatory measures if additional tariffs are imposed but expressed skepticism about using Canadian energy exports as a negotiation tool. Despite Canada’s efforts to address trade disputes raised by the U.S., including canceling a planned digital services tax and retracting a Canadian content levy on streaming platforms, Greer noted that these actions did not significantly impact U.S. perceptions.