Prime Minister Mark Carney disclosed that he engaged in discussions with U.S. President Donald Trump on Monday, indicating that the removal of American tariffs, which continue to impact significant Canadian sectors, is unlikely to happen in the near term. This conversation coincided with the lifting of most of Canada’s retaliatory tariffs on U.S. goods, a gesture aimed at urging Trump to eliminate tariffs on key industries such as steel and aluminum.
Carney described his dialogue with Trump as positive, covering various topics including trade, geopolitics, labor, and other issues during a meeting with his cabinet in the Greater Toronto Area. He mentioned that Michael Sabia, the new clerk of the Privy Council, is currently in Washington, D.C., meeting with American counterparts as part of ongoing discussions, although immediate resolutions on strategic sectors are not expected.
The news of the conversation was unexpected, as the Prime Minister’s Office had not publicly disclosed it, contrary to their usual practice of releasing summaries following such discussions with world leaders. The PMO emphasized the importance of continuous communication between Carney and the president for the benefit of workers, businesses, and all Canadians.
Earlier this year, Canada imposed duties on $60 billion worth of U.S. goods, but recently removed them from items covered by the Canada-U.S.-Mexico Agreement (CUSMA). Conservative Leader Pierre Poilievre criticized this move as a concession by Carney, stating that he would have handled the situation differently if the Conservatives had been in power.
As Carney and his cabinet prepare for upcoming meetings before the House of Commons resumes, the unresolved trade disputes and the pending CUSMA review remain key focus areas. The upcoming budget discussions are expected to be crucial as the Liberal government plans to table the budget in October after postponing it due to the federal election earlier this year. Carney aims to balance the operating budget over the next three years while committing to increased defense spending and infrastructure development, describing it as a budget of both austerity and investment requiring discipline.