In a recent meeting at the White House, U.S. President Donald Trump and Canadian Governor Mark Carney discussed the ongoing trade negotiations between the two nations. Former President Trump called the whole thing “very complicated.” Yet, he promised that Canada would be “very pleased” by whatever final deal emerges. Trade negotiations between the U.S. and Canada have extended beyond the late August deadline. With this week’s announcement, Canada is now the only G7 country that hasn’t completed a trade deal with Trump this year.
Throughout the meeting, Trump honed in on the competitive relationship between the U.S. and Canada. He made the case that American companies like Ford and Chrysler hurt the U.S. by deciding to locate their operations in Canada. He remarked, “The problem is that they want a car company, and I want a car company.” This pronouncement highlights the friction in areas where the two countries compete for economic supremacy.
To be sure, the negotiative climate has been complicated by Trump’s repeated insistence that the U.S. and Canada are “in competition.” He elaborated, “We don’t like to compete because we sort of hurt each other.” This recognition of reciprocal economic injury mirrors an emerging understanding that competition can have destructive effects on cross-border relationships.
Mark Carney, who has visited the White House twice since taking office in March, emphasized that while competition exists, collaboration is crucial. He stated, “There are areas where we compete and it’s in those areas we have to come to an agreement that works.” Carney mentioned that there are more areas where the two nations can thrive together, asserting, “There are more areas where we are stronger together, and that’s what we’re focused on. We’re going to get the right deal.”
The two leaders displayed a mutual respect, with Trump referring to Carney as a “very strong” leader and a “tough negotiator.” Their mutual chemistry seems to have allowed for free-flowing discussion though, without getting too far afield on the very thorny issues still remaining.
Trump’s use of sector specific tariffs on Canadian goods as a negotiation tool further convoluted US-Canadian trade negotiations. He’s imposed 50% tariffs on some metals and 25% on automobiles. Such measures have negatively affected bilateral ties and heightened international pressure on both countries to find an agreement.
Carney expresses optimism that a favorable deal is still possible. He underscored Canada’s reliance on U.S. markets, noting that 75% of Canadian exports go to the United States. After all, this statistic shows how tied together both economies are and how imperative it is for common ground to be found.