Politics

Carney and Trump are holding private talks to drop tariffs

Prime Minister Mark Carney and U.S. President Donald Trump are engaged in discussions behind closed doors to hammer out a trade deal and ease tariffs that have been a point of contention between the two countries.

Sources familiar with the talks confirmed the communication between the two leaders to CBC/Radio-Canada, and Industry Minister Mélanie Joly later confirmed that Carney and Trump are indeed in discussions.

According to a source who requested anonymity, Carney and Trump have been having phone conversations in the evenings and exchanging text messages regarding trade since Carney’s recent visit to the White House. However, there have been no public statements or readouts regarding the discussions between the two leaders.

The main focus of the conversations is to come to an agreement on the trade war initiated by the U.S. against Canada. Both Carney and Trump have expressed a desire to establish a new economic and security deal, but tensions escalated earlier this week when Trump increased tariffs on all steel and aluminum imports to 50 percent, dealing a significant blow to Canadian industries that are major suppliers of these metals to the U.S.

Carney has hinted at ongoing “intensive discussions” and mentioned that his government is preparing retaliatory measures in case negotiations with the U.S. fail. Sources have indicated that there is a hope for a Canada-U.S. trade deal to be finalized before the upcoming G7 summit, where Carney and Trump are expected to meet in Alberta in just 10 days.

When asked about the progress of the trade deal, Canada-U.S. Trade Minister Dominic LeBlanc declined to provide specifics, stating that he is refraining from discussing it publicly. Joly confirmed the existence of talks and emphasized the importance of diplomatic discussions during a trade war.

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A spokesperson from the White House acknowledged that Trump is directly involved in discussions with Canada but did not mention Carney specifically. The spokesperson mentioned that talks are ongoing regarding trade, border security, and defense matters, and any announcements regarding a deal would come directly from President Trump.

The U.S. embassy official also confirmed that both leaders or their teams have acknowledged the ongoing conversations, but stressed that negotiations would not be conducted in public.

Ambassador Pete Hoekstra, Trump’s representative in Canada, mentioned that the trade deal is being negotiated at the highest levels of the U.S. government with the involvement of top elected officials.

Carney, who ran on a platform of standing up to Trump, is facing pressure to respond to the recent tariff hike. The Canadian Steel Producers Association has criticized the increased tariffs, labeling them as a severe blow to the industry and calling for immediate counter-tariffs on U.S. metals.

Ontario Premier Doug Ford, in close communication with the prime minister, has advocated for retaliation if a deal cannot be reached promptly.

In conclusion, the discussions between Carney and Trump signify a crucial effort to resolve the trade tensions between Canada and the U.S. and establish a new economic partnership. The outcome of these negotiations will have significant implications for both countries’ industries and economies.

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