Prime Minister Mark Carney described U.S. President Donald Trump as a “strong negotiator” while downplaying recent tariff threats ahead of upcoming trade discussions between Canada and the United States.
Carney said some of Trump’s recent remarks—including warnings of a possible 100 per cent tariff on Canadian goods—should be viewed as strategic positioning rather than definitive policy. With a formal review of the United States–Mexico–Canada Agreement scheduled for this year, Carney said he expects the talks to be tough but constructive.
According to the prime minister, the review process was built into the trade agreement itself and should not be confused with a full renegotiation. He emphasized that both countries are entering a phase of careful reassessment rather than a repeat of the high-stakes trade battles seen during Trump’s first term.
Trump’s latest tariff threat followed Canada’s decision to ease restrictions on Chinese electric vehicle imports as part of a narrowly focused trade arrangement with Beijing. Carney has repeatedly stressed that Canada is not pursuing a comprehensive free trade agreement with China and that the recent move applies only to select sectors.
Federal officials echoed that message, noting Canada’s discussions with China are limited in scope and comparable to past U.S. arrangements that involved tariff adjustments in exchange for market access. Ottawa maintains that its approach is pragmatic and designed to protect domestic interests while stabilizing key export sectors.
Carney said Canada is prepared to move quickly in the upcoming trade review and remains committed to defending Canadian workers, industries, and sovereignty. He also pointed out that Canada previously aligned with the United States by imposing steep tariffs on Chinese electric vehicles, steel, and aluminum, measures that prompted retaliatory duties from Beijing on Canadian agricultural and seafood products.
Under the new framework, Canada plans to allow a capped number of Chinese electric vehicles into the country at reduced tariffs, with limits set well below overall annual vehicle sales. Carney has said the agreement is expected to make more affordable electric vehicles available to Canadians while encouraging future investment in Canada’s auto sector.
The trade tensions come amid a broader war of words between Carney and Trump, fuelled by disputes over sovereignty and foreign policy. Trump has repeatedly made provocative remarks about Canada and other allies, while Carney has positioned himself as a leading voice among mid-sized nations seeking greater cooperation in response to U.S. pressure.
Despite the rhetoric, Carney signaled confidence that Canada can navigate the negotiations ahead, framing Trump’s aggressive posture as part of a familiar negotiating style rather than a breakdown in relations.