Carney Confirms No Threat from Trump to Abandon Trade Deal

Prime Minister Mark Carney has reported that U.S. President Donald Trump has not signaled any intention to withdraw from the North American free trade agreement during recent discussions. Carney’s comments emerged after a private meeting with Trump and Mexican President Claudia Sheinbaum in Washington, D.C., coinciding with the FIFA World Cup draw on December 5. The leaders primarily focused on the upcoming review of the Canada-U.S.-Mexico Agreement (CUSMA), which is set for evaluation in 2026.

In a year-end interview with CBC’s Rosemary Barton, Carney indicated that discussions included the review process and potential timelines for renegotiation. “What we talked about, the two presidents and myself, was the process for reviewing, renegotiating CUSMA,” he explained. Carney emphasized that no definitive timelines were established during the meeting.

Concerns regarding the future of CUSMA have arisen following remarks from U.S. Trade Representative Jamieson Greer, who suggested the possibility of the U.S. pursuing separate trade agreements with Canada and Mexico or even opting to withdraw entirely from CUSMA. Greer stated, “Could it be exited? Yeah, it could be exited. Could it be revised? Yes. Could it be renegotiated? Yes. All of those things are on the table.”

Carney noted that Trump did not express any intentions to abandon CUSMA during their talks. “My discussions with President Trump—similarly to President Sheinbaum’s discussions—focused on the review and adjustment of CUSMA, not on any intention to leave it altogether,” Carney said.

Despite the ongoing trade agreement, the U.S. continues to impose significant tariffs on Canadian exports, including a 50 percent tariff on steel and aluminum, 10 percent on lumber, and 25 percent on certain automotive products. Following his election victory in April, Carney positioned himself as the leader capable of managing relations with Trump. Since then, he has made concessions to the U.S. administration, including retracting a proposed digital services tax and eliminating some retaliatory tariffs on American goods.

Despite these efforts, Carney has faced criticism from Conservative Leader Pierre Poilievre for failing to secure a deal to eliminate U.S. sectoral tariffs. Poilievre accused the Prime Minister of not delivering on promises made during the campaign. “U.S. tariffs on Canada are twice as high as when you were elected saying you would get rid of them,” Poilievre stated in a letter to Carney in October.

Carney has defended his administration’s trade record, asserting that Canada maintains the best possible trade deal with the U.S. due to specific tariff exemptions under CUSMA that other nations do not enjoy. “The challenge remains that the United States has fundamentally changed its trading relationships with everybody in the world, including Canada,” he explained.

During discussions, Carney expressed that the current tariffs will be a significant part of the upcoming CUSMA negotiations. He stated that the U.S. must recognize the advantages of relatively free trade across borders, particularly concerning sectors like automotive, steel, aluminum, and lumber. “Does it view its competitors as Canada, or does it view its competitors as China?” Carney questioned.

Trade Minister Dominic LeBlanc has indicated that the U.S. remains open to resuming trade discussions with Canada, with direct engagement expected during the CUSMA review process. As negotiations continue, the impact of U.S. tariffs is acutely felt in Canadian communities, including the closure of a lumber mill in British Columbia, resulting in job losses.

The complexities of U.S.-Canada trade relations are set to evolve as leaders prepare for the CUSMA review. Carney’s interview highlights both the challenges and opportunities that lie ahead for North American trade as the three nations navigate their interconnected economies. The full year-end interview with Carney will air on CBC’s Rosemary Barton Live on Sunday at 10 a.m. ET.