President Donald Trump met with Canadian Prime Minister Mark Carney at the White House amid growing friction over trade and the upcoming review of the United States-Mexico-Canada Agreement (USMCA). While the two leaders expressed mutual fondness, they disagreed sharply on the nature of their relationship.
Thank you for reading this post, don't forget to subscribe!Trump characterized the trade disagreement as a “natural conflict” between the two nations, openly suggesting he may scrap the USMCA review entirely in favor of “different deals” that are better for the U.S. Carney, on the other hand, politely rejected the word “conflict,” saying the two countries have areas where they “compete” but are ultimately “stronger together.”
The trade dispute, which has included Trump’s tariffs on Canadian steel and aluminum and his repeated, joking-but-serious threats to annex Canada as the “51st state,” has driven U.S.-Canada relations to their lowest point in memory, according to former Canadian Ambassador Frank McKenna. Carney, who is under pressure to secure relief from sector-specific tariffs (like the 50% duty on steel), described the immediate talks as “successful” and “positive” despite Trump’s noncommittal stance on the USMCA’s future. The stakes are high for Canada, as over three-quarters of its exports go to the U.S.
Trump to Canada: Let’s Merge! (Or Maybe Just Trade)
U.S.-Canada relations are hitting a low point, but you wouldn’t know it from President Trump’s banter. After meeting with Canadian Prime Minister Mark Carney, Trump joked about a “merger” while simultaneously threatening the future of the continent-wide USMCA trade agreement.
Despite a better personal relationship with Carney than with his predecessor, Justin Trudeau, Trump insisted the two long-time allies have a “natural conflict” over trade. Carney pushed back, preferring the term “competition.” The Prime Minister is desperate for relief from Trump’s Section 232 tariffs—especially the steep duties on steel and aluminum—as the crucial USMCA agreement faces a review next year. For Canada, whose economy relies on the U.S. market, the trade uncertainty has led to an “outright rebellion” among its citizens and businesses, according to one former ambassador.
Trade Deal in Jeopardy: USMCA Uncertainty Rattles Canada’s Economy
The future of the North American free trade agreement is in doubt following a meeting between President Donald Trump and Canadian Prime Minister Mark Carney, where Trump expressed ambivalence over the upcoming USMCA review.
Trump suggested he might allow the current agreement to expire or pursue “different deals” that favor the U.S. This uncertainty is critical for Canada, as more than 75% of its exports cross the border daily, forming a nearly $3.6 billion (Canadian) trade relationship.
While the USMCA currently keeps over 85% of trade tariff-free, specific Section 232 tariffs—including 50% duties on steel and aluminum—are already hitting Canadian industries hard. Prime Minister Carney’s goal for the Oval Office visit was to get relief from these duties and stability for the USMCA. Despite a “successful” and “positive” meeting, the fate of the USMCA remains unclear, leading to an “undeniable sense of betrayal” and “lowest point” in relations, according to diplomatic sources.
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