Prime Minister Mark Carney said Canada’s tone toward the United States is already “quite firm” and insisted trade negotiations with Washington remain “constructive” as an Aug. 19 deadline for new U.S. tariffs draws near.
U.S. President Donald Trump has threatened to impose new 50 per cent tariffs on a wide range of Canadian imports beginning Aug. 19.
“We have time. We have real negotiations, constructive negotiations on several issues,” Carney said Wednesday during a news conference in Toronto.
The prime minister was asked whether Canada should change its strategy or adopt a tougher stance toward the Trump administration.
Carney suggested now is not the time to shift course. He noted that Canada’s minister responsible for Canada-U.S. trade, Dominic LeBlanc, is in Washington alongside Canada’s chief trade negotiator Janice Charette for a series of meetings aimed at advancing the talks.
The pair also travelled to Washington last week, where they met with U.S. Trade Representative Jamieson Greer.
“I have conversations with the Americans myself. But this is a negotiation and this is not the time to change,” the prime minister said.
The new tariffs Trump has threatened would apply at a rate of 50 per cent on a broad range of Canadian goods. Unlike previous measures, they would not exempt products that comply with the Canada-United States-Mexico Agreement, or CUSMA.
The White House has said the latest round of tariffs is a response to provincial restrictions on alcohol, Canada’s supply management system for dairy products and certain automotive quotas.
In response, Carney previously said trade negotiations with the United States would intensify.
The tariff dispute launched by the U.S. president has now lasted for more than a year.
In early July, Washington announced it would not renew CUSMA in its current form, as Canada and Mexico had hoped. Instead, the United States triggered an unprecedented annual review process.
Last month, LeBlanc told The Canadian Press that the annual review process was a road paved with unknowns.
“We have suggested bringing structure and rigour to the review process the Americans have initiated,” said LeBlanc.
The annual review can be renewed each year for up to 10 years. If the three countries fail to agree on a path forward, CUSMA would expire after its current term ends in 2036.
Canada hopes bilateral negotiations with the United States will ultimately reduce sector-specific tariffs, including those on steel and aluminum.
The Globe and Mail reported that one option under consideration is for Canada to introduce export quotas on steel and aluminum in an effort to reduce U.S. tariffs on those sectors. The report, which cited anonymous sources, could not be independently confirmed by The Canadian Press.
Asked Wednesday about the possibility of export quotas, Carney declined to comment.
“This is not the time to trigger the options, but we have options,” he said.
LeBlanc’s office said the minister also met Tuesday with Jay Timmons, president and chief executive officer of the National Association of Manufacturers, before meeting Wednesday with Republican senators Kevin Cramer of North Dakota and Bill Hagerty of Tennessee.
Picture Courtesy: THE CANADIAN PRESS/Darryl Dyck
