Prime Minister Mark Carney has emphasized that Canadian trade negotiators are concentrating on discussions with their U.S. counterparts regarding “all strategic sectors,” particularly the automotive industry, as the deadline for U.S. President Donald Trump’s upcoming round of tariffs looms close. Carney expressed his eagerness for addressing all aspects of Section 232 during an event in Toronto related to housing. Section 232 is the legislation enabling Trump to impose tariffs on various sectors like aluminum, steel, and auto parts based on a U.S. Commerce Department investigation’s identification of a national security threat.
Canada-U.S. Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette have returned to Washington this week for further meetings. Carney mentioned his active involvement in these ongoing discussions. The Globe and Mail reported, citing multiple sources, that both countries were contemplating steel and aluminum export quotas to reduce U.S. tariffs on these industries. However, two government sources disclosed to CBC News that this does not reflect the current negotiation status.
During recent meetings, LeBlanc and Charette engaged with key figures like Jay Timmons, CEO of the National Association of Manufacturers, and Republican senators Kevin Cramer from North Dakota and Bill Hagerty from Tennessee. It remains uncertain if LeBlanc will have another meeting with U.S. Trade Representative Jamieson Greer. Carney stressed the importance of addressing all strategic sectors and Section 232 during these negotiations.
As the August 19 deadline approaches, where the U.S. plans to impose 50 percent tariffs on around five percent of Canadian exports, Carney’s comments hint at the need for a robust response. Greer has previously defended the potential tariffs as part of a broader strategy to reduce the U.S. trade deficit. Carney and Trump have agreed to intensify trade discussions, with Canada aiming to take a firm stance leading up to the deadline.
Carney has not ruled out retaliatory actions if additional tariffs are imposed, although he expressed reservations about using Canadian energy exports as a bargaining chip. Canada has already addressed several trade issues raised by the Trump administration, such as canceling a proposed digital services tax and revoking a Canadian content levy on streaming services. Despite these efforts, Greer has indicated that Canada may not receive full credit for reversing these decisions.