Prime Minister Mark Carney described the ongoing negotiations with the U.S. to avert impending tariffs as intricate and high-pressure. Carney intends to engage with his American counterpart within the next two days to establish a mutually acceptable agreement.
While addressing the media in St. John’s on Monday, where he revealed a significant hydroelectric agreement with Quebec and Newfoundland and Labrador, Carney refrained from disclosing the specifics of the negotiations publicly in light of President Donald Trump’s threat to impose Section 338 tariffs on Canadian goods.
“We are engaged in sensitive and intense discussions, and this is not the appropriate time for public negotiation,” stated Carney in French, emphasizing that Canada was entering the negotiations from a position of strength.
When questioned about potential retaliation if a deal is not reached, Carney asserted his readiness for any scenario. Discussions between Carney and Trump occurred over the phone on Monday, as confirmed by Audrey Champoux, a spokesperson for the prime minister, who did not elaborate on the conversation.
Trade Minister Dominic LeBlanc and chief negotiator Janice Charette have been actively involved in talks with U.S. Trade Representative Jamieson Greer to prevent both the planned Section 338 tariffs and to reduce existing Section 232 tariffs on industrial products. Following an extended meeting on Monday with Greer and U.S. Commerce Secretary Howard Lutnick, it remains uncertain whether this was the final ministerial-level meeting.
While it was anticipated that the meeting would be the concluding one at the ministerial level, it is unclear if that remains the case post-meeting. Although there are possibilities of another meeting with Greer before Carney and Trump’s discussion ahead of the tariff deadline, no such meeting is currently scheduled.
The negotiators from the U.S. are expected to confer with Trump after the meeting with Canadian officials. The negotiations hinge on the concessions Canada can secure from the U.S. in exchange for its own compromises. The U.S. is seeking the return of American liquor to Canadian stores and the removal of Canadian retaliatory tariffs on U.S. autos, among other demands.
Conversely, Canada is pressing for the annulment of the threatened Section 338 tariffs and substantial relief for sectors severely impacted by Trump’s levies. Greer has indicated that the U.S. is unwilling to completely abolish its tariff structure.
Despite challenges in the negotiations, Erin O’Toole, a member of the prime minister’s advisory committee, noted some progress with the U.S. However, the final decision rests on whether Trump will accept the reduced tariff rates negotiated by Greer and whether these levies are acceptable to the affected Canadian industries.
O’Toole emphasized the importance of achieving a fair deal that benefits Canadian workers and the economy, warning of retaliatory measures if the 50% tariffs come into effect. He expressed hope for avoiding detrimental tariff-related conflicts that could harm both economies and workers.