Prime Minister Mark Carney expressed the sensitivity and intensity of the last-minute discussions with the U.S. to prevent a new set of tariffs scheduled to come into effect this week. Carney mentioned his upcoming conversation with the American leader within the next 48 hours to reach a mutually beneficial agreement.
During a press briefing in St. John’s on Monday, Carney refrained from disclosing the specifics of the negotiations publicly, emphasizing the delicate nature of the ongoing talks to avert President Donald Trump’s proposed Section 338 tariffs on Canadian goods.
When asked about potential retaliatory actions if an agreement is not reached, Carney affirmed his readiness for any scenario. The Prime Minister had a phone discussion with Trump on Monday afternoon regarding the trade negotiations, as confirmed by Audrey Champoux, a spokesperson for Carney.
Over the past three weeks, Canada’s Trade Minister Dominic LeBlanc and chief negotiator Janice Charette engaged in a series of discussions with U.S. Trade Representative Jamieson Greer to prevent the threatened Section 338 tariffs and reduce the existing Section 232 tariffs on industrial products. Following their extended meeting on Monday, it was uncertain if further discussions at the ministerial level would occur.
Despite the uncertainty, sources mentioned a possible additional meeting with Greer before Carney’s conversation with Trump before the tariff deadline on Wednesday. The Canadian negotiating team anticipated a meeting with Trump post their Monday discussion with U.S. officials.
LeBlanc reiterated the commitment to continue working towards a resolution after the bilateral meeting. A White House official reiterated the administration’s focus on fair trade and protecting American interests.
The negotiations revolve around the trade-offs each party seeks, with the U.S. advocating for the return of U.S. liquor in Canadian stores and modifications in Canada’s retaliatory tariffs on U.S. autos and dairy sectors. Conversely, Canada aims for the removal of threatened tariffs and significant relief for sectors affected by the existing tariffs.
While the U.S. remains firm on maintaining its tariff policies, Canadian negotiators anticipate challenges in avoiding the new tariffs under discussion. Erin O’Toole, part of the Prime Minister’s advisory committee, acknowledged some progress in negotiations but highlighted the need for fair agreements beneficial to Canadian workers and economy.
O’Toole emphasized the importance of avoiding tariff escalation, emphasizing the negative impact on economies and workers. Canada is prepared to respond should the 50% tariffs proposed by Trump come into effect, aiming to navigate towards mutually acceptable tariff rates for both sides.