Prime Minister Mark Carney described the eleventh-hour discussions with the U.S. to prevent a new round of tariffs set to activate this week as “sensitive” and “intensive.” He intends to engage with the American leader within the next 48 hours to facilitate a mutually acceptable agreement. During a press briefing in St. John’s on Monday, Carney refrained from elaborating publicly on the progress of the talks aimed at circumventing President Donald Trump’s proposed Section 338 tariffs on Canadian goods worth billions of dollars. Emphasizing the confidential nature of the negotiations, Carney stated, “This is not the appropriate time for public negotiations.” He further asserted Canada’s strong position in these discussions.
When asked about potential retaliatory actions against Trump if an agreement is not reached to avert the new tariffs, Carney affirmed readiness for any outcome. A spokesperson for the prime minister, Audrey Champoux, confirmed a phone call between Trump and Carney took place on Monday to discuss the ongoing trade negotiations, without disclosing specific details.
Over recent weeks, Canada’s Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette engaged in a series of meetings with U.S. Trade Representative Jamieson Greer to not only prevent the impending Section 338 tariffs but also seek reductions in existing Section 232 tariffs on industrial products such as steel, aluminum, autos, and lumber, in exchange for concessions from Canada. Following an extended meeting on Monday with Greer and U.S. Commerce Secretary Howard Lutnick, it was initially anticipated to be the final ministerial-level discussion. However, post-meeting uncertainties persisted regarding the finality of the negotiations.
While Canadian officials may meet with Greer again before the upcoming tariff deadline, no further meeting has been scheduled at present. The American negotiating team was reportedly planning to update Trump following the meeting with Canadian representatives. The ongoing negotiations center on the reciprocation of concessions between Canada and the U.S., encompassing various contentious issues, including the potential imposition of new tariffs by both parties.
Despite the challenges in the negotiations, Erin O’Toole, a member of the prime minister’s Canada-U.S. advisory committee, acknowledged some progress made by Canada in discussions with the U.S. However, the ultimate decision rests on Trump’s acceptance of revised tariff rates proposed by Greer and their impact on Canadian industries. O’Toole emphasized the importance of achieving a fair agreement that safeguards Canadian workers and benefits the economy. In the event that Trump’s proposed tariffs are enforced, Canada is preparing to respond accordingly, aiming to avert a detrimental escalation of trade tensions that could harm both nations’ economies and workforce.