Even after Washington imposed new tariffs on Canadian exports, Ottawa isn’t shutting the door on trade talks. Quite the opposite. In a Sunday interview on CBS’s Face the Nation, Canadian Intergovernmental Affairs Minister Dominic LeBlanc emphasized that “the U.S. is still negotiating in good faith” and that talks are ongoing.
LeBlanc said President Trump is expected to speak with Canadian Prime Minister Mark Carney in the coming days to clarify the path forward.
New Tariffs Stir Economic Tension
The new tariffs came into effect last Thursday and target products not covered under the United States-Mexico-Canada Agreement (USMCA). While most Canadian exports remain protected, the new levies hit core sectors—especially steel and aluminum.
LeBlanc acknowledged the economic pressure but said Canada is focused on maintaining an open dialogue. “We need to be able to supply each other—reliably, efficiently, and in a way that keeps jobs in both our economies,” he said.
A Relationship Too Intertwined to Cut Off
LeBlanc traveled to Washington last week and spent several days meeting with senior White House officials. He described the meetings as “productive,” despite the tariffs already being in place.
He emphasized the long-standing economic ties between the two nations: “We build things together. Our supply chains are integrated. You can't just pull them apart.” That’s why Canada remains committed to finding a deal.
LeBlanc also acknowledged U.S. national security concerns. “We understand and fully respect the president’s position on that. In fact, we share it.” However, he stressed that any agreement must protect jobs on both sides of the border.
Politics Add a New Layer of Complexity
Political tensions flared late last week when President Trump posted on his platform that Mark Carney’s support for recognizing Palestinian statehood could jeopardize a trade deal. He wrote that this stance “makes it very hard to reach an agreement with them.”
LeBlanc did not directly address the post during his CBS appearance but kept a steady tone. He reiterated that progress is still possible and that Canada wants to keep things moving forward.
White House: Tariffs Are Final — But Details Could Shift
National Economic Council Director Kevin Hassett gave an update on NBC, stating that the new tariffs are “more or less locked in.” Still, he left room for minor adjustments, saying, “Some tweaking around the edges is still possible.”
Hassett also dismissed the idea that any market backlash would change Trump’s position. “Markets have seen what we’re doing and celebrated it. So I wouldn’t expect that to happen. These are final deals.”
Canada Holding Back on Retaliation — For Now
So far, Canada has not announced any retaliatory measures. LeBlanc remains focused on cooperation, and Prime Minister Carney has not commented publicly on the Palestinian recognition issue.
Despite the political and economic tension, talks remain active. Both sides understand that a complete breakdown in trade would inflict real damage—especially on industries already caught in the crossfire.
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