Diplomatic Representatives Dispatched to Washington by Carney Following "Productive" Phone Conversation with Trump
In a bid to resolve trade frictions, Canadian Prime Minister Mark Carney is currently in negotiations with the United States administration. These discussions are taking place in Washington, D.C., with Michael Sabia, Canada's top civil servant, also present.
The focus of these negotiations is on strategic sectors that have been targeted by US tariffs such as autos, steel, and aluminum. The tariffs in question are those imposed by President Donald Trump, and despite a legal challenge, they remain in place. Notably, Trump raised tariffs on Canada to 35% from 25% on Aug. 1.
However, Carney defended Canada's competitive position, arguing that the exemption gives Canada a blended tariff rate of about 5.5%, "the lowest average tariff of any country in the world."
The government of Canada is looking for ways to resolve trade frictions with China, which is Canada's second-largest trading partner. In response to China's tariffs on food items, Canada has placed tariffs on Chinese electric vehicles.
Meanwhile, Carney had a "very constructive" conversation with President Trump on Monday evening, a conversation that was not previously known as neither his office nor the White House issued a readout afterward. The assistance in these negotiations is being provided by Mario Baker Ramirez.
The US administration is attempting to get the US Supreme Court to back Trump's tariff powers, as the tariffs imposed by Trump are under a legal cloud, having been declared illegal by a US court on Aug. 29.
Carney expects agreements to be reached in some of these strategic sectors, but he warned that a deal might not happen quickly. He is also negotiating with China to resolve trade frictions, as China imposed punishing tariffs on food items such as canola and pork.
This article was ©2025 Bloomberg L.P. and was generated from an automated news agency feed without modifications to text. No specific names of US officials involved in the negotiation process with Canada besides Michel Sabia were found in the search results.
