GOP senator announces tariff exemptions for Canadian goods, as Trump says Canada’s working hard to make a deal

OTTAWA – U.S. President Donald Trump said Canada is “working very hard” to make a trade deal with the U.S., despite talks remaining at a standstill since August.

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“Canada is working very hard to make a deal with us, and I hate to say this, but we have all the cards,” Trump told reporters in Washington on Friday.

Carney, who is currently visiting Istanbul where he signed a strategic partnership with Turkey, said the timing of a trade deal remains up to the U.S.

“We could sign it this afternoon if the U.S. were there,” said Carney, during a press conference on Friday. “If it has to be months from now or longer than that, or another administration before a proper deal comes into place, we will do that.”

When asked specifically if Canada could sign a deal with the Americans before the U.S. midterms on Nov. 3, Carney did not close the door on that possibility and reiterated that it’s up to the U.S., who are “hard to predict.”

There has been very little movement on the trade file between the two countries after negotiations fell apart in late August. Carney paused negotiations, citing last-minute demands from U.S. negotiators that made a deal untenable for Canadian interests. Key sticking points included U.S. tariffs on Canadian medium and heavy duty trucks, French-language labelling and streaming discoverability rules and U.S. oversight on Canadian trade policy.

On Wednesday, Carney told reporters he spoke with Trump “for quite some time” about geopolitical and trade issues.

On Thursday, the Advisory Committee on Canada–U.S. Economic Relations met for the first time since Sept. 4. Present at that meeting was Canada-U.S. Trade Minister Dominic LeBlanc, Chief Trade Negotiator Janice Charette and Canadian Ambassador to the U.S. Mark Wiseman.

Charette told a business audience in Toronto on Thursday that communication channels remain open with American counterparts.

“I have said publicly that pens are down and the doors are open,” she said, at the Toronto Global Forum. “Canada stands ready to continue discussions towards actually trying to achieve our objectives around stabilizing the relationship, you have seen reference, I think, publicly in the last couple of days, conversations are going on at multiple levels.”

Despite those open channels, there has also been a notable escalation in rhetoric from U.S. officials in recent weeks, in the lead-up to the U.S. midterms.

During a podcast appearance earlier this month, U.S. Ambassador Pete Hoekstra warned Canadian politicians to “to keep your nose out of American politics.” In late September, White House trade adviser Peter Navarro told Canadian lobbyists to “get the hell out of our country.”

On Wednesday, the U.S. embassy in Ottawa published a “fact sheet” listing quotes from Canadian politicians accusing them of openly describing “plans to influence American politics.”

The named politicians include Industry Minister Mélanie Joly, Ontario Premier Doug Ford and Liberal MP Anthony Housefather.

Carney expressed disappointment with Hoekstra’s allegations that Canadian officials are interfering in American elections.

“I’m disappointed that their envoy sees that as his role to make these suggestions,” said Carney. “We have a very deep diplomatic presence in the United States.”

Earlier this week, Global Affairs Canada issued a directive to Canadian diplomats working in the U.S. to stay away from candidates running in the midterm elections, according to a report by Bloomberg News.

Carney said the guidance was issued before the fact sheet was published by the U.S. envoy, reminding diplomats to be careful who they are seen with.

“We have lots of interaction with American companies, citizens, individuals, stakeholders more broadly,” he said. “We’re very, very careful to not be seen to, not be seen to interfere.”

The prime minister said the allegations have “no merit” and Canadian officials have no intention of interfering with U.S. democratic processes.

In the upcoming midterms the Republican Party is expected to lose control of Congress. Trump’s personal approval ratings have taken a hit, thanks to voter frustrations over inflation, the economy and U.S. military action in Iran.

When asked if he was concerned about Republican officials potentially laying the groundwork to blame Canadians for their midterm losses and justify further tariffs, Carney said he doesn’t see that as a likely outcome.

National Post

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