President Donald Trump suggested that progress could be made on trade talks with Canada, after meeting with Prime Minister Mark Carney, but stopped short of offering any concrete assurances as tariffs continue to weigh on the neighboring economy.
No Concessions On Trade
Speaking to reporters in the Oval Office on Tuesday, alongside Carney, Trump said he expected his Canadian counterpart to “walk away very happy,” amid the ongoing tariffs imposed by his administration, which threaten the $1.3 trillion trading relationship, according to a report by The Financial Times.
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Despite praising Carney as a “great prime minister” and a “very strong, very good leader,” Trump failed to specify how the two nations can work out their differences on trade.
Instead, Trump said that “there's natural conflict” between the U.S. and Canada, while describing the relationship as “complicated.”
Trump said that he wanted Canada “to do great, but there's a point at which we want the same business,” citing competition from Canadian farmers, automakers and steel producers. Carney, meanwhile, said Canada planned to invest “a trillion in the next five years” in the U.S., emphasizing that the two nations are “stronger together.”
Canada’s Economy Shrinks
Canadian exports dropped 7.5% during the second quarter, primarily due to the punitive 35% tariffs imposed on the country by the Trump administration, citing Ottawa’s “failure to cooperate” on combating fentanyl flows into the U.S.
Late last month, Trump unveiled a new set of tariffs targeting heavy-duty trucks, drugs, and kitchen cabinets, among other things. Canada is one of the countries hit particularly hard by this move, as it is a significant source of truck imports to the United States.
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