U.S. Trade Deal Unlikely Without Tariffs, Says Carney

Prime Minister Mark Carney stated that U.S. President Donald Trump appears committed to tariffs, indicating that any trade deal with the U.S. might involve accepting some export levies. Carney mentioned that all of Trump's trade agreements so far have included tariffs. He expressed skepticism about the U.S. being willing to negotiate a deal without tariffs. For instance, the trade arrangement between Trump and the U.K. includes a 10% baseline tariff.

Carney emphasized the need to stabilize the situation for Canada when discussing the potential for a tariff-free deal with the U.S. He did not confirm whether he would accept tariffs. Carney emphasized that Canada enjoys almost free trade with the U.S. under Trump's current framework, thanks to tariff exemptions granted under the Canada-U.S.-Mexico Agreement (CUSMA).

However, Carney highlighted issues with the U.S. sectoral tariffs that apply universally to certain Canadian exports like steel, aluminum, and autos, as well as the threatened tariffs on pharmaceuticals, lumber, and copper. These Section 232 tariffs, named after a U.S. trade law section allowing the president to impose levies on goods deemed to threaten national security, have negatively impacted the Canadian economy, leading to job losses and reduced exports.

According to the source: CBC.