Prime Minister Mark Carney on Monday said “the relationship is good” with the United States and that he is in regular contact with U.S. President Donald Trump, despite an ongoing trade war and no deal in sight to resolve it.
Carney made the comments during the first question period of the new fall session of Parliament, where he faced questions from Bloc Québécois Leader Yves-François Blanchet on the status of negotiations with Washington.
“Can he state today that he is confident that he can re-establish our privileged relationship of trust between Canada and the U.S. administration quickly, as the best way to put our trade relationship back on the right track?” Blanchet asked.
“Mr. Speaker, the Canada-U.S. relationship is good,” Carney replied in French.
“Yes, we are experiencing difficulties and challenges, some setbacks, but I am proud that this government stands up for Canada.”
The prime minister added that he speaks regularly with Trump, including over the past weekend, a conversation that Carney said focused on the war in Ukraine and issues with China.
Asked by Blanchet if he planned to visit Washington, D.C., in the near future, Carney would not say if another trip or face-to-face meeting with Trump was in the works.
“The U.S. president is a modern man,” he said of the 79-year-old Trump. “I speak with him regularly. We send each other text messages.”
Carney met with Trump at the White House in early May, shortly after the Liberals’ victory in April’s federal election. He has not returned to the U.S. since, but met with Trump directly at June’s G7 summit in Alberta.
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Since those meetings, trade negotiations between Canada and the U.S. have repeatedly stalled, and Trump has raised his tariff rate on Canada to 35 per cent.
That rate is higher than what many other American trade partners currently face, but is far lower than select countries that have faced Trump’s ire, such as China, India and Brazil.
Carney reiterated Monday that the 35 per cent tariff rate only applies to goods that aren’t covered by the Canada-United States-Mexico Agreement on free trade (CUSMA) — about 15 per cent of exports to the U.S. — which he called a “success” for Canada.
Yet Canada also faces sector-specific tariffs as high as 50 per cent on steel, aluminum, copper, autos and lumber.
The U.S. also ended a so-called “de minimis” tariff exemption on low-value packages that cross its borders, effectively ending duty-free shipping to the country in a move criticized by Canadian businesses.
Despite that, Carney told the House of Commons that “we have the best deal with the U.S. worldwide right now.”
He added that Canada must additionally focus its efforts on diversifying its trade relationships with Europe, Asia and South America.
Canada, the U.S. and Mexico are preparing for a scheduled review of CUSMA next year.
Direct Canada-U.S. trade talks resumed last month after Carney announced Canada would lift its retaliatory counter-tariffs on U.S. goods covered by CUSMA.
Canada-U.S. Trade Minister Dominic LeBlanc, who has travelled to Washington several times to meet with Trump administration officials, said “no” when asked Monday if he had an update on the talks.
Earlier this month, Carney announced a $5-billion fund to help sectors slammed by U.S. tariffs.
The relief package also includes a “Buy Canadian” policy for the federal government and another $1 billion aimed at helping small and medium-sized businesses.
Carney has previously railed against U.S. tariffs on Canada as “economic nationalism and mercantilism,” and vowed to secure a new trade and security deal with Washington during the election campaign.
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