Carney to return to Washington as Trump's tariffs hit sectors hard
The prime minister is expected to visit the White House on Tuesday to meet face-to-face with U.S. President Donald Trump after he publicly brought up his 51st state idea again and tariffs continue to pummel some Canadian industries.
Mark Carney's office said he will travel to Washington on Monday evening ahead of talks.
"The Prime Minister's working visit will focus on shared priorities in a new economic and security relationship between Canada and the U.S.," the prime minister's office said in a statement.
The statement said the meeting comes after both countries launched public consultations last month ahead of the first joint review of the Canada-U.S.-Mexico Agreement (CUSMA).
It's been more than two months since Canada and the U.S. blew past a deadline they jointly agreed on to reach a trade deal. Carney rescinded a tax on big U.S. technology firms at Trump's request and dropped retaliatory tariffs to try to advance talks.
So far, there's no sign of a deal.
Carney's minister involved in negotiations with the U.S. said he hasn't seen a dead end to the trade talks and hopes the two countries can reach a deal before the CUSMA review next year.
"I'm hoping we can get progress before the review process formally engages," Canada-U.S. Trade Minister Dominic LeBlanc said on Thursday. "But time will tell us if my optimism is misplaced."
Trump's continuing to push ahead with his aggressive tariff agenda against much of the world.
This week, he floated the idea of Canada becoming the 51st state again while speaking to military leaders. He also hit softwood lumber producers with a new tariff that's coming on lumber and timber, kitchen cabinets and other furniture shipments into the U.S.
The lumber tariffs are yet another blow to Canadian producers who are also facing American countervailing and anti-dumping duties.
As the days go on without a deal, pressure is mounting from the opposition to land a win.
Conservative Leader Pierre Poilievre said Carney promised to make some sort of an agreement with the United States by July 21.
"Where is the win?" Poilievre said Thursday.
"It has been a gigantic bait-and-switch. We were sold this brilliant negotiator. Where is it?"
Carney, who campaigned on a promise to stand up to Trump, originally said he was seeking a larger trade and security deal with the U.S. But over time he has publicly tried to lower expectations.
Last month, Carney said he's pursuing a series of smaller deals to try and get sectors including metals, auto and lumber some relief from Trump's tariffs.
While other countries including the U.K. and European Union landed agreements by saying yes to a set rate of tariffs on all goods entering the U.S, LeBlanc said Canada will not accept any deal that includes a baseline tariff.
Carney has repeatedly said he believes Canada has the best trade deal with the U.S. because 85 per cent of exports to the U.S. are tariff-free. He says relief is needed for industries including metals, lumber and the auto sector struggling with Trump's tariffs.
The aluminum and steel industries have faced crushing 50 per cent tariffs for months. Steel production across the country dropped in May by 30 per cent.
The federal government recently announced a $400-million loan to Algoma Steel so it can continue operations and transition away from the U.S.
Carney has said he's in regular talks with Trump, including over text message. The meeting is a chance to try and advance talks in person.
The visit will mark Carney's second visit to the White House since becoming prime minister.
Carney also visited the oval office in May where he and Trump agreed to disagree on the president's idea of making Canada the 51st state.
Trump told senior military officials at an event in Virginia this week that Canada could be covered under its Golden Dome missile defence system it's developing, if it becomes part of the U.S.
"Canada called me a couple of weeks ago. They want to be part of it. To which I said, well, why don't you just join our country? Become 51, become the 51st state and you get it for free," Trump said on Tuesday.
- An earlier version of this story said it has been more than six months since Canada and the U.S. blew past a deadline for a deal. In fact, it has been more than two months.
cbc.ca
