Carney, Trump Likely to Speak in ‘Next Number of Days’: Canadian Trade Minister

Prime Minister Mark Carney and U.S. President Donald Trump will likely talk “over the next number of days” following the U.S. decision to impose a 35 percent tariff on Canadian goods not covered under the free-trade agreement between Canada, the United States, and Mexico, the federal minister responsible for Canada-U.S. trade says.

Dominic LeBlanc told CBS News’ “Face the Nation” that he was “encouraged” by recent discussions with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer.

He added that while he believed it was still possible to reach a deal to bring down tariffs, discussions have not yet reached the point of getting a deal that is “in the best interest of the two economies.”

“We think there is an option of striking a deal that will bring down some of these tariffs provide greater certainty to investment,” LeBlanc said, noting that he expects Carney and Trump to speak “over the next few days.”

While no Canada-U.S. trade deal was reached by the Aug. 1 deadline, Carney said Ottawa will continue to negotiate with the United States on trade .

Trump hiked tariffs from 25 percent to 35 percent on goods imported from Canada, although products under the United States-Mexico-Canada Agreement (USMCA) continue to be exempt.

Trump told reporters on July 31 that Carney had called him earlier in the day but that they didn’t speak. Meanwhile, Trump did speak with Mexican President Claudia Sheinbaum on July 31 and provided Mexico with a 90-day tariff pause, keeping U.S. tariffs on that country’s goods at 25 percent.

The U.S. president called his conversation with Sheinbaum “very successful” and said the two countries are “getting to know and understand each other,” in a July 31 Truth Social post. He added that Mexico agreed to “immediately terminate its Non Tariff Trade Barriers, of which there were many.”

Trade and Tariffs

The prime minister said in an Aug. 1 statement that he was “disappointed” by the U.S. decision to raise tariffs on Canada, but that Canada retains one of the lowest average tariff rates globally due to many products being exempt under USMCA. He called USMCA the “world’s second-largest free trade agreement by trading volume.”

Carney said the U.S. average tariff on Canadian goods “remains one of its lowest for all of its trading partners” due to the trade agreement, which was signed during Trump’s first term as president. The Bank of Canada said last week that up to 95 percent of Canadian exports could qualify for exemptions under USMCA if they meet the agreement’s rules of origin.

However, sectors such as lumber, steel, aluminum, and automobiles are “heavily impacted” by U.S. levies, Carney said. Sectoral levies include 50 percent tariffs on steel, aluminum, and copper, and 25 percent tariffs on automobiles and auto parts.

The White House said Canada has “failed to cooperate” in stopping the flow of fentanyl and other illicit drugs into the United States through their shared border, and has instead “retaliated against the United States for the President’s actions to address this unusual and extraordinary threat to the United States.”

“In response to Canada’s continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency,” the White House said in a fact sheet on July 31.

Meanwhile, Carney said that only 1 percent of the fentanyl entering the United States comes via the Canadian border and that Canada has been “working intensively to further reduce these volumes.”

The prime minister said that while Canada will continue to negotiate with the United States, the Canadian government is “laser focused” on what it can control, such as reducing interprovincial trade barriers and developing major projects. He said these initiatives could bring $500 billion in new investments into Canada.