Prime Minister Mark Carney has revealed that U.S. President Donald Trump has not signaled any intentions to withdraw from the North American free trade deal established during his initial White House term. Carney held a private meeting with Trump and Mexican President Claudia Sheinbaum in Washington during the FIFA World Cup draw earlier this month.
The discussions mainly focused on outlining the general framework for upcoming talks concerning the Canada-U.S.-Mexico Agreement (CUSMA), scheduled for review in 2026. While specific timelines were not finalized, potential timelines and processes for reviewing and potentially renegotiating CUSMA were discussed.
U.S. Trade Representative Jamieson Greer recently suggested the possibility of pursuing separate agreements with Canada and Mexico or potentially exiting the deal altogether. However, he emphasized that all options, including exiting, revising, or renegotiating, were being considered.
In a report presented to the U.S. Congress, Greer emphasized keeping the president’s options open and negotiating with a strong stance to address identified issues, only recommending renewal if resolutions are achievable. Despite Trump’s past threats to withdraw from NAFTA and similar comments about CUSMA, Carney clarified that during their private discussions, the president did not mention any intentions to leave the agreement entirely.
Carney highlighted the ongoing challenges of U.S. tariffs on Canadian exports of steel, aluminum, lumber, automotive products, and other goods. Despite winning the federal election in April and positioning himself as adept at handling relations with the U.S., Carney has faced criticism for not securing a deal on sectoral tariffs.
Efforts to alleviate the trade tensions, such as retracting a digital services tax and removing retaliatory tariffs on American goods, have been made by the prime minister post-election. However, a comprehensive agreement to eliminate sectoral tariffs remains elusive.
Carney defended his trade policies, citing Canada’s advantageous position under CUSMA due to several tariff exemptions not extended to other countries affected by American tariffs. He acknowledged the evolving nature of U.S. trade relationships and stressed the importance of continually improving the trade deal for Canada’s benefit.
Negotiations to reduce steel and aluminum tariffs were reportedly progressing until Trump called them off in response to an anti-tariff ad campaign by the Ontario government. Canada-U.S. Trade Minister Dominic LeBlanc indicated readiness to resume trade talks with the U.S., likely during the CUSMA review.
Carney emphasized that the current sectoral tariffs will be a significant part of the CUSMA renegotiations, urging the U.S. to consider the advantages of facilitating the movement of key goods across borders. He posed the question of whether the U.S. views its trade competitors as Canada or China.
The full year-end interview with Prime Minister Mark Carney can be viewed on Rosemary Barton Live this Sunday at 10 a.m. ET.