Canada's Prime Minister, Mark Carney, says he hopes to soon reach a trade and security agreement with U.S. President Donald Trump, but warned that the agreement may not be ready in time for the G7 summit in Alberta next week.
In a French interview with Radio-Canada, Carney said that the talks are “intensive” and described a “good relationship” with Trump. However, he added that “there is no agreement yet to sign.” He pointed out that Canada and the United States have many areas where they could cooperate, especially in aluminum, aerospace, and defense.
According to sources at Bloomberg familiar with the negotiations, both sides have put forth written proposals, and recent discussions have focused on trade rules for steel and aluminum. Those sources said that the Canadian government has generally been more optimistic about reaching an agreement than its U.S. counterparts.
After President Trump imposed a 50% import tax on foreign steel and aluminum, Carney's government chose not to increase its own counter-tariffs on U.S. products. He warned that further retaliation remains on the table if necessary.
“The G7 in Alberta will be important, including the bilateral meeting with Mr. Trump,” Carney said. “We will take the time we need. We need an agreement that is in Canada's interest; otherwise, we will not sign. We can wait. The stronger we become, the weaker the Americans will become.”
Carney urges the U.S. to lift all tariffs or Canada will retaliate
Carney emphasized that Canada wants all U.S. tariffs lifted and that the trade agreement between Canada, the U.S., and Mexico, which Trump signed in 2020, must be respected. “If we continue to make progress, we will wait; otherwise, we will prepare to retaliate,” he said. “There are unfair and illegal tariffs, and the Americans must eliminate them.”
Beyond tariffs on steel and aluminum, the Trump administration has also imposed tariffs on foreign-made vehicles and applied a 25% tax on other Canadian and Mexican products that fall outside the North American trade agreement. Trump has even suggested new taxes on imports of lumber and copper, both key exports for Canada.
Carney added that if an agreement is reached, Canada could once again view the U.S. as a reliable partner. “It depends,” he said, noting that his government is also seeking to expand trade ties with European countries. “We may have a closer agreement, not a global one with the Americans at this time.”$BTC $XRP #BinanceHODLerHOME