Prime Minister Mark Carney revealed that he engaged in a conversation with U.S. President Donald Trump on Monday. However, he indicated that the removal of American tariffs causing economic strain on key Canadian sectors is unlikely to happen immediately. This discussion took place on the same day when most of Canada’s retaliatory tariffs on U.S. products were lifted as a goodwill gesture in the hopes of persuading Trump to eliminate tariffs on industries such as steel and aluminum.
Carney described his talk with Trump as productive, covering various topics including trade, geopolitics, labor issues, and more. He mentioned that his new Privy Council clerk, Michael Sabia, is currently in the U.S. capital meeting with American counterparts. Despite Sabia’s visit, Carney cautioned against expecting quick resolutions in critical sectors but emphasized the ongoing discussions.
The news of the conversation between Carney and Trump was unexpected, as the Prime Minister’s Office did not release any official summaries following the discussion. However, the PMO emphasized that Carney and the president maintain close and frequent communication for the benefit of workers, businesses, and all Canadians. Earlier this year, Canada imposed tariffs on $60 billion worth of U.S. goods but recently removed them from items covered by the Canada-U.S.-Mexico Agreement (CUSMA).
As the trade tensions persist and with an impending CUSMA review, Carney and his cabinet are in the midst of back-to-back meetings before the House of Commons reconvenes. The upcoming budget discussions are anticipated during these closed-door sessions, as the budget presentation, delayed to October due to the federal election, is a key focus. Carney’s election promises include balancing the operating budget over the next three years, increasing defense spending significantly, and undertaking major infrastructure projects all within a framework of fiscal discipline.