Experts Optimistic as Mark Carney Gears Up for Trade Talks With Trump

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WASHINGTON — Prime Minister Mark Carney faces close scrutiny from frustrated Canadians angry at Donald Trump, as well as from a worried business sector seeking tariff reductions, during his meeting with the U.S. president on Tuesday in Washington.

Following months of Trump’s annexation threats, the recently elected prime minister faces a challenging task: demonstrating resilience while keeping Canada’s position intact within an essential North American trade agreement that the president’s tariffs aim to disrupt.

“My government will fight to get the best deal for Canada,” Carney said Friday in his first news conference since the election.

The United States-Mexico-Canada Agreement on trade, known as USMCA, was negotiated during President Donald Trump’s initial term. At the time, Trump referred to it as the greatest deal ever made, while Canadian authorities hailed it as a triumph for Canada.

CUSMA is set for review next year, but following Trump’s comeback to the White House, it swiftly became apparent that the president planned to shake up the North American trade agreement.

Early on, both Canada and Mexico faced tariffs imposed by the president, who connected these measures to the influx of fentanyl through their borders. According to U.S. government statistics, only a small amount of fentanyl is seized at the U.S.-Canada border. Additionally, both nations were affected by President Trump’s levies on steel, aluminum, and automobiles.

Trump’s provocations involved referring to the then-prime minister, Justin Trudeau, as a “governor” and suggesting that the nation would fare better as an American state.

Although the responsibilities worried America’s nearest neighbors, indications have surfaced that the president continues to value CUSMA — a major accomplishment from his initial term in office.

When Trump initiated his trade conflict globally with “reciprocal” tariffs in early April, both Canada and Mexico were exempted. He delayed the biggest of these tariffs for 90 days, stating this period could be used to work out agreements; however, he maintained a uniform 10 percent duty on most goods imported into the United States.

“If you interpret the signs correctly, it appears that both Canada and Mexico might have been put on hold… Ideally, this suggests that the administration will consider (CUSMA) as a whole,” stated Laura Dawson, who specializes in Canada-U.S. relations and serves as the executive director of the Future Borders Coalition.

The Tuesday meeting might offer glimpses into Trump’s strategy concerning what was previously one of the steadiest and most amicable international partnerships. Last week, Trump referred to Carney as “a very nice gentleman” and expressed his anticipation of developing an excellent rapport with Canada.

The United States Trade Representative, Jamie Greer, suggested that the Trump administration aims to sustain alliances with nearby countries. Greer informed Fox News earlier this week that “President Trump strongly desires maintaining a robust relationship within North America.”

“More manufacturing needs to be established in North America—we should have it within our hemisphere,” Greer stated.

However, it’s still unclear what Trump’s team aims to achieve with Canada.

Regarding talks with other nations, Greer defined a “favorable agreement” as one where countries reduce tariff rates and eliminate non-tariff obstacles affecting items such as American farm goods. According to him, an advantageous pact should tackle US worries over digital commerce and copyright issues, synchronize export restrictions aimed at bolstering economic stability, and provide the United States with business prospects, particularly through investments in strategic minerals.

The CUSMA agreement allows for duty-free trade on almost all products between Canada and the United States. Both the U.S. Department of Defense and Ottawa are collaborating on investments in key Canadian minerals initiatives. To address American worries, Canada has implemented tariffs on Chinese electric vehicles, steel, and aluminum.

Steve Verheul, who previously served as Canada’s chief trade negotiator, recently stated at the Public Policy Forum’s Canada Growth Summit that the present climate mirrors the stress experienced during the initial years of President Trump’s term when he withdrew from the North American Free Trade Agreement, leading to its replacement with USMCA.

Verheul stated that the United States presented “highly extreme and entirely unacceptable” suggestions; however, Canada managed to steer through this scenario by demonstrating creativity and proposing viable solutions.

Even though Canada is witnessing extremely harsh suggestions once more, Verheul mentioned that he believes there are indications Trump might be retracting his stance. The president has consistently delayed imposing tariffs on Canada. Despite moving ahead with these duties in March, just a few days afterward, he partly rescinded them for goods meeting the requirements set out under the CUSMA agreement.

Trump likewise diminished the effect of tariffs on the North American auto industry.

Verheul stated that Canada faces “a challenging negotiation,” yet he believes that in the end, there will be duty-free trade.

Dawson stated that Canada needs to present a united stance during negotiations with the administration. Trump has acknowledged the Liberals’ narrow victory and remarked that this close result will make matters very complex for the nation.

Dawson suggested that Carney should create a cross-partisan alliance on trade issues. In the initial term of President Trump’s administration, Ottawa established a bi-partisan NAFTA advisory committee which featured Rona Ambrose, who previously served as the acting head of the Conservative Party.

“Dawson emphasized the importance of having robust Conservative presence, significant regional presence, and substantial sector-specific representation,” he stated.

Carney needs to approach this strategically, she mentioned. Canadian enterprises desire space for economic expansion within both Canada and the United States; however, the prime minister shouldn’t imply that everything has been absolved, Dawson emphasized.

“There remains significant hostility in Canada,” she stated. “Managing both a short-term crisis alongside the United States and addressing the long-term competitiveness issue for Canada’s internal economy will be challenging.”

Politicians across Canada will keep an eye on Tuesday’s meeting, along with the leaders from Yukon, Northwest Territories, and Nunavut, who convened for the Northern Premiers’ Forum on Sunday.

When queried about their expectations for the Trump-Carney meeting, P.J. Akeeagok, R.J. Simpson, and Ranj Pillai highlighted that it was positive news that initiatives such as an Arctic security corridor in the North have moved to the forefront of the national discussion.

“I’m thrilled about hearing about these significant initiatives in the pipeline; however, our anticipation builds as we eagerly await witnessing tangible outcomes and actual investments materialize. We have been informed that Carney intends to take bold steps swiftly, which aligns perfectly with what we strongly endorse here in Nunavut,” Premier Akeeagok of Nunavut stated to journalists following the forum.

The report from The Canadian Press was initially released on May 4, 2025.

Kelly Geraldine Malone from The Canadian Press