Canadian and American trade negotiators had been progressing towards outlining a potential agreement before U.S. President Donald Trump suddenly terminated the discussions last week, according to Canada’s ambassador in Washington. Ambassador Kirsten Hillman informed the Senate foreign affairs committee on Wednesday that they were in the process of defining the initial steps of a trade deal between Canada and the United States. However, negotiations were halted by Trump in a late-night social media announcement following an advertisement by the Ontario government that utilized former U.S. president Ronald Reagan’s statements to convey an anti-tariff message to American audiences.
During the committee hearing, Hillman was questioned about the direction of the talks before their abrupt end. While noting advancements made since Prime Minister Mark Carney’s recent visit to Washington, she acknowledged that certain contentious issues still needed to be addressed. Hillman clarified that although they were not on the brink of finalizing an agreement, progress had been made in recent weeks unlike before.
In a significant development, Carney and Trump met in person for the first time post the negotiation halt. They interacted briefly during a toast at a dinner preceding the Asia-Pacific Economic Cooperation Summit (APEC) but had limited engagement otherwise. Ontario Premier Doug Ford announced the withdrawal of the ad that seemingly triggered Trump’s decision, although it had already aired over the weekend, including during the World Series on American networks.
Initially aiming for a comprehensive trade and security pact that included tariff reductions, Ottawa’s expectations were adjusted in the following weeks to concentrate primarily on specific sectoral tariffs. Reports from the Globe and Mail indicated a potential deal on aluminum and steel ahead of the APEC summit, a claim Carney downplayed stating ongoing discussions with the U.S. and advising against exaggerating the situation.
Hillman emphasized to the committee that recent discussions had centered on steel and aluminum but stressed that it did not exclude other industries. The U.S. proposed focusing on a few key issues initially while not disregarding others, suggesting a phased approach with accelerated talks on some sectors followed by discussions on remaining areas. This nuanced strategy, according to Hillman, is often misconstrued as sector-specific negotiations rather than a sequenced approach as preferred by the U.S.