Title: Carney's Washington Trip Offers No Tariff Deal Expectations
OTTAWA — Prime Minister Mark Carney is heading to Washington for discussions with U.S. President Donald Trump, but Canadians should not anticipate any significant breakthroughs regarding tariffs. Carney has previously indicated that there will be no "white smoke" signaling a deal, a term he uses to describe the elusive agreement he seeks to alleviate the tariffs imposed by the U.S.
A senior official, speaking on the condition of anonymity, stated that this trip is primarily a working meeting. The focus will be on addressing specific issues rather than announcing a new agreement. As a result, businesses and Canadians hoping for immediate relief from tariffs will likely have to continue waiting.
Since taking office, Carney's government has faced increased tariffs on steel and aluminum, with two summer deadlines passing without resolution. Expectations for this latest meeting are low, as the official noted that no specific outcomes are anticipated. Instead, the meeting is seen as an opportunity for candid discussions that can only occur in person.
This meeting marks Carney's third official encounter with Trump since he won the federal election in April. His previous visits included a trip to the White House in May and a meeting during the G7 summit in Kananaskis, Alberta. Both leaders also participated in the UN General Assembly in New York last month.
Carney will be accompanied by Intergovernmental Affairs Minister Dominic LeBlanc, Industry Minister Melanie Joly, and Foreign Affairs Minister Anita Anand. The prime minister is scheduled to meet with Trump in the Oval Office on Tuesday and will also attend a working session with U.S. officials.
A key reason for this trip is to establish direct communication with Trump and his team as both nations prepare for a critical review of the Canada-U.S.-Mexico free trade agreement (CUSMA), which is set for 2026. Both Canada and the U.S. have initiated consultations regarding this agreement, which will undergo its first joint review since it was signed in 2020.
Carney recently met with Mexican President Claudia Sheinbaum in Mexico City, where they discussed the upcoming review of the trade deal. Carney views CUSMA as crucial for maintaining favorable trade conditions, as approximately 85% of goods crossing the Canada-U.S. border are currently exempt from tariffs under this agreement.
Despite this, several Canadian sectors continue to struggle under U.S. tariffs. Steel and aluminum products are still subject to a 50% levy under Section 232 of the U.S. Trade Expansion Act. Additionally, softwood lumber has recently faced a new 10% tariff. The Carney government is working to secure relief for these affected sectors.
Tariffs also remain on auto parts that do not comply with CUSMA, as well as on copper. LeBlanc indicated that Canada is open to negotiating either sector-specific deals or a broader agreement. "Both tracks are still in discussions," he said, without indicating which option might be more feasible.
As the prospect of a tariff deal appears dim, Carney is under increasing pressure from Opposition Conservative Leader Pierre Poilievre. Poilievre criticized Carney's performance, stating on social media that the prime minister had failed to deliver on his promise to negotiate a deal with Trump. "No word on where the prime minister’s elbows have gone after he backed down again and again with nothing to show for it," Poilievre wrote.