Prime Minister Mark Carney has described the ongoing negotiations with the United States to avert impending tariffs as “intense” and “delicate.” Carney intends to engage with his American counterpart within the next 48 hours to secure a mutually acceptable agreement.
During a press briefing in St. John’s on Monday, Carney, while unveiling a significant hydroelectric accord with Quebec and Newfoundland and Labrador, refrained from divulging specific details about the talks to evade President Donald Trump’s threatened Section 338 tariffs on Canadian goods worth billions of dollars.
“We are currently engaged in sensitive and rigorous negotiations. This is not the appropriate time for public discourse,” Carney stated in French, emphasizing that Canada approaches the negotiations from a position of strength.
When questioned about potential retaliatory actions if an agreement is not reached, Carney asserted his readiness for any scenario. Notably, Carney and Trump conversed by phone on Monday, as confirmed by Audrey Champoux, a spokesperson for the Prime Minister, without disclosing further specifics.
Over the past three weeks, Canada’s Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette have conducted multiple discussions with U.S. Trade Representative Jamieson Greer to prevent the imposition of Section 338 tariffs and decrease the existing Section 232 tariffs on industrial goods such as steel, aluminum, autos, and lumber in exchange for certain Canadian concessions.
Following their most extended meeting yet, lasting about one hour and 45 minutes, with Greer and U.S. Commerce Secretary Howard Lutnick on Monday afternoon, LeBlanc and Charette’s final ministerial-level meeting was anticipated, although it remained uncertain post-meeting.
Although there is a possibility of another meeting with Greer before Carney and Trump’s scheduled discussion before the tariff deadline on Wednesday, no such meeting has been arranged. The American negotiating team is expected to confer with Trump following the meeting with Canadian officials.
The negotiations are primarily centered on the exchange of concessions between Canada and the U.S. The U.S. aims to have American liquor reinstated in Canadian stores and seeks the removal of Canada’s retaliatory tariffs on U.S. autos, alongside modifications to the dairy sector’s quota allocation. Conversely, Canada seeks the elimination of the impending Section 338 tariffs and substantial tariff reductions for sectors adversely impacted by the existing levies imposed by Trump.
Greer has consistently indicated that the U.S. is unwilling to completely abolish its tariff structure. Despite the challenges, Erin O’Toole, a member of the Prime Minister’s Canada-U.S. advisory committee, noted some progress in negotiations with the U.S., emphasizing the importance of reaching a fair deal beneficial for Canadian workers and the economy.
Should Trump proceed with the planned 50% tariffs, Canada is prepared to respond accordingly. O’Toole underscored the importance of avoiding tariff escalations that could harm both economies and workers, highlighting the need for a mutually beneficial agreement.