Carney Briefs Premiers on Urgent U.S. Trade Talks Ahead of Deadline

Prime Minister Mark Carney will provide a crucial update on the ongoing trade discussions with the United States during a meeting with provincial and territorial premiers on Tuesday. This briefing comes as the August 1 deadline for potential new tariffs approaches, heightening concerns among Canadian leaders.

Carney’s meeting will take place in Muskoka, Ontario, where he is expected to begin with an opening statement. However, the majority of the discussions are likely to occur in private, reflecting the sensitive nature of the negotiations. Premiers are expected to voice their specific concerns regarding the impending trade measures.

Key Trade Issues on the Table

Among the premiers, François Legault, the Premier of Quebec, has indicated that he will advocate for the protection of supply management in the dairy, egg, and poultry sectors. He also seeks exemptions for Quebec’s cultural industries from free-trade requirements. This highlights the diverse interests at play as provinces aim to safeguard their local industries.

David Eby, Premier of British Columbia, has expressed hope that Carney will address the longstanding issue of softwood lumber, which has been a persistent irritant in Canada-U.S. trade relations. Eby emphasized the need for a proactive approach to resolve this matter, which has seen tariffs imposed in the past.

Carney recently commented on the likelihood of tariffs remaining in place, stating it is “unlikely that there wouldn’t be at least some tariffs” in any agreement reached before the deadline. Most of Canada’s trade with the U.S. is protected under the Canada-U.S.-Mexico Agreement (CUSMA), which covers a substantial portion of goods and services crossing the border. Nevertheless, tariffs imposed by the Trump administration have created significant challenges.

Current Tariff Landscape

As of now, the Trump administration has enacted a series of tariffs, including a 50 percent tariff on steel and aluminum, 25 percent tariffs on various goods, automobiles, and parts not covered by CUSMA, and a 10 percent tariff on energy products. The looming threat of a potential 35 percent blanket tariff on August 1 adds pressure to the ongoing negotiations.

In response to these measures, Canada has implemented counter-tariffs on billions of dollars worth of American exports. Carney has chosen to hold off on further retaliatory actions while negotiations continue, aiming for a resolution by the end of the month.

Scott Moe, Premier of Saskatchewan, has expressed a cautious approach regarding counter-tariffs, favoring engagement with the White House to renew CUSMA. The agreement is set for a mandated review in 2026. Moe acknowledged that while achieving zero tariffs on all issues may not be feasible, the goal should be to minimize tariffs as much as possible.

Legault has emphasized the necessity for a definitive timeline to provide businesses with more certainty, regardless of the outcome of the negotiations. Carney has reiterated that his team is engaged in “long and tough negotiations” with U.S. officials, striving for the best possible deal for Canada.

As the August deadline approaches, the stakes for Canadian trade are high. The outcome of this meeting with the premiers will play a significant role in shaping the government’s approach to these critical negotiations and the future of Canada-U.S. trade relations.