Prime Minister Mark Carney has adopted a more cautious approach to U.S. trade relations, moving away from the assertive stance he took during his campaign seven months ago. Amid ongoing trade tensions, Carney has refrained from imposing retaliatory tariffs against the United States, despite the U.S. maintaining heavy tariffs on Canadian steel, aluminum, automobiles, and lumber. Instead, Carney and his government are focusing on low-key negotiations that target key Canadian industries.

This month, Carney stated that Canada is "not considering hitting American goods with more retaliatory tariffs." He emphasized that ongoing high-level negotiations with Washington could be jeopardized by retaliatory measures. Ontario Premier Doug Ford and various labor organizations have urged Carney to take a firmer stance, citing job losses and a slowdown in investment as reasons for a stronger response to U.S. protectionism. However, Carney has maintained that "now is a time to talk" rather than retaliate.

The shift in Carney's approach has sparked discussions among commentators, who argue that he has become more conciliatory, describing him as more "elbows down" than "elbows up." This change in strategy may be paying off, as a recent report indicated that the Trump administration is considering easing auto tariffs. The Department of Commerce is expected to announce a five-year extension of an arrangement that allows American automakers to reduce tariffs on imported car parts. This potential easing could lower costs for cross-border vehicle trade and help Canadian automakers sustain their manufacturing operations, potentially safeguarding thousands of jobs.

In a recent interview, Carney acknowledged that the trade war and President Trump's actions have made his role as Prime Minister more significant. He noted that the upcoming discussions surrounding the Canada-U.S.-Mexico free trade agreement will require renegotiation of certain elements, as the president has expressed a desire for changes. Carney pointed out that Canada was one of the few countries, alongside China, to initially impose retaliatory tariffs.

Reflecting on his dealings with Trump, Carney remarked, "I’ve learned lots of things from President Trump," and acknowledged the effectiveness of Trump's approach to framing issues and dominating the agenda. He also noted that backing off on the digital service tax led to positive outcomes, including the president confirming tariff-free status for most of Canada's trade.

Carney's shift toward negotiation became evident in September when Canada lifted counter tariffs on most U.S. imports. While counter tariffs on steel, aluminum, and automobiles remain in place, the intention behind this change was to foster progress in trade discussions. During his late-September visit to New York for the UN General Assembly, Carney promoted Canada as a dependable trading partner, signaling a strategic pivot in the country's trade policy with the U.S.