Carney wants broader tariff relief as Trump’s 50% levy looms

Canada Prime Minister Mark Carney in 2025. (Sean Kilpatrick/The Canadian Press via AP)

Canada’s trade talks with the U.S. are still aimed at reducing all of the sector-specific tariffs imposed by U.S. President Donald Trump, Prime Minister Mark Carney said.

The two countries are currently negotiating to find a trade deal by Aug. 19. That’s the date on which Trump promised last month the US will apply new 50% tariffs on a fresh basket of Canadian-made goods, unless Carney’s government addresses what the US calls “irritants.”

READ MORE: U.S. slaps antidumping duties on Canadian, Mexican van trailers

U.S. Trade Representative Jamieson Greer pointed to Canadian countertariffs on U.S.-made autos, trade controls on dairy, and provincial liquor bans, when unveiling the latest import tax threat. But speaking to reporters on Aug 5 in Toronto, Carney said he’s still looking for a more comprehensive agreement.

“Canada’s been very clear: We want all 232s addressed, all strategic sectors,” Carney said, referring to U.S. tariffs imposed under Section 232 of the Trade Expansion Act. Those duties, which Trump set while citing national security, are battering the Canadian steel, aluminum, auto and lumber sectors by restricting access to their biggest export market.

Canadian trade officials have been meeting with their counterparts in Washington over the past few weeks, and Carney said he has also been personally involved in the talks.

“We have time,” Carney said. “We have real negotiations, constructive negotiations on multiple issues.”

But he reiterated that Canada could retaliate if Trump moves ahead with fresh tariffs. “We have options,” he said. “It’s not the moment to say our options.”

Last week, Carney appeared to rule out using Canadian oil as a trade weapon, saying it’s more important for Canada to be known as a reliable supplier of the resource. 

Since taking office last year, Carney has made repeated attempts to negotiate a trade deal with Trump and made numerous unilateral concessions to keep talks going, such as removing most of Canada’s retaliatory countertariffs that had been imposed by his predecessor Justin Trudeau.

Trump has so far declined to give any relief to Canada in the so-called strategic sectors targeted by the Section 232 tariffs. 

Instead, U.S. officials have frequently complained about the retaliation Canada still has in place, particularly the moves by multiple provinces — which are separate sub-national governments — to pull U.S.-made alcohol from their liquor agencies’ shelves.

Officials including Dominic LeBlanc, Canada’s minister in charge of U.S. trade, and Janice Charette, Canada’s chief trade negotiator, have held a higher tempo of talks in Washington over the past two weeks to try to find common ground before Trump’s deadline.

The discussions include a revived proposal from last year that would see a tariff quota set for Canadian steel and aluminum imports to the U.S., the Globe and Mail newspaper reported Aug. 4. 

Last June, Trump hiked US duties to 50% on most foreign-made steel and aluminum. A quota could mean a certain amount of Canadian metal products qualify for a lower tariff, the report said.

Last year the U.K. struck a deal for lower U.S. tariffs on steel — though in April, Trump said that pact “can always be changed.”