Trump and Carney struck an optimistic tone on tariffs, but major concessions remain elusive
Prime Minister Mark Carney’s second White House meeting with President Donald Trump ended with both leaders projecting optimism, though the substance of their talks suggested Canada’s path to tariff relief remains uncertain.
“We’re going to especially treat Canada fairly,” Trump said, standing beside Carney in the Oval Office. “I think they’re going to walk away very happy.”
The US president, who has imposed a 35% general tariff on Canadian exports—with sector-specific levies of 50% on metals and 25% on automobiles—added, “The people of Canada will love us again.”
Carney, for his part, said he was “confident we’ll get the right deal” and emphasized the depth of economic ties. “There are areas where we compete and it’s in those areas we have to come to an agreement that works. But there are more areas where we are stronger together, and that’s what we’re focused on,” he said.
Tariffs and trade: No quick fixes
Trump acknowledged the “natural conflict” between the two countries, especially in autos and steel. “We don’t like to compete because we sort of hurt each other. It’s a natural business conflict. Nothing wrong with it.”
While he hinted at possible future renegotiation of the Canada-US-Mexico Agreement (CUSMA), Trump was clear that “we’re going to have tariffs.”
Carney, who campaigned on a promise to fight back against American tariffs, has so far lifted most reciprocal measures except those matching US national security tariffs.
The impact of US tariffs has been severe for Canadian manufacturers. General Motors has announced 2,000 layoffs in Oshawa, while Stellantis has suspended a major plant overhaul in Brampton. Aluminum and forestry exports have also suffered.
Canada’s government has earmarked $10 billion in loans for affected steel and aluminum firms, but industry leaders remain skeptical about the prospects for relief.
As the USMCA review nears, BMO’s Aaron Goertzen warns that even mild tariff scenarios could slow Canada’s growth. He forecasts GDP gains of just 1.3% through 2026, with the Bank of Canada likely cutting rates to 2% to cushion the blow.https://t.co/ZC4IKRpn0x
— Canadian Mortgage Professional Magazine (@CMPmagazine) October 7, 2025
Trade, security, and political calculus
While the majority of Canadian exports still enter the US tariff-free under CUSMA, the ongoing dispute underscores the fragility of cross-border trade. Trump’s tariffs, justified on contested grounds of migration and fentanyl flows, have fueled inflation in the US and uncertainty in Canada.
Carney’s government has also made concessions, including scrapping a digital services tax and boosting military spending, in hopes of easing tensions.
The two leaders struck a positive tone, but ultimately no clear hint of an actual deal emerged from the meeting. That means Canadians will be waiting a while longer before the economic uncertainty that's shrouded the country since the trade war began earlier this year starts to ease.
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