Prime Minister Mark Carney says Canada will move ahead with negotiations to renew its free trade agreement with the United States, even as he bluntly acknowledges that there is “nearly nothing normal” in America right now.
Speaking in Ottawa on Tuesday, Carney pushed back against claims from U.S. Treasury Secretary Scott Bessent that he had walked back remarks made during his recent speech at the World Economic Forum in Davos. Bessent had suggested the prime minister softened his criticism of U.S. trade policy during a phone call with President Donald Trump.
Carney flatly rejected that characterization, saying he stood by his Davos comments in full.
“To be absolutely clear, and I said this to the president, I meant what I said in Davos,” Carney told reporters. “Canada was the first country to understand the shift in U.S. trade policy, and we are responding to that.”
Later in the House of Commons, Carney was asked whether Canada could still conduct “normal and cordial” trade talks with the United States amid renewed tariff threats. Responding in French, he said the geopolitical reality has changed.
“The world has changed. Washington has changed. There’s nearly nothing normal in the U.S. now, and that’s the truth,” Carney said, adding that discussions with American officials are continuing regardless.
When pressed by opposition MPs to guarantee a renewed trade agreement by July 2026, the prime minister said negotiations are expected to begin within weeks.
“That is the intention of the United States, Mexico and Canada,” he said.
Carney also confirmed that trade diversification efforts will continue, including engagement with China, though his office later clarified that Canada is not pursuing a comprehensive free trade agreement with Beijing. The government has emphasized that recent tariff adjustments with China are limited in scope and focused on specific sectors, including agriculture.
Carney said he spoke with Trump for approximately 30 minutes during a call initiated by the U.S. president, describing the conversation as “very good” and covering topics ranging from global security to trade and economic partnerships. He said he explained Canada’s efforts to strengthen domestic capacity while building new international partnerships and maintaining the North American trade framework.
The prime minister characterized Trump’s recent threat to impose 100 per cent tariffs on Canadian goods as part of a negotiating strategy, noting that the upcoming trade review is expected to be “robust.”
U.S. officials have publicly warned that Canada remains deeply dependent on access to American markets, while Carney has countered that Canada is positioning itself for greater economic resilience through diversified trade relationships.
Despite heightened rhetoric on both sides, Carney said Canada remains committed to constructive engagement with the United States as talks move forward.