No Deal Yet: Trump and Carney in Washington
President Donald Trump arrived at the White House confident that a deal with Canada on tariffs could be reached, telling reporters that Canadians will soon “love us again.” The comment came as he hosted Prime Minister Mark Carney and a delegation of Canadian officials for a bilateral meeting and luncheon aimed at resolving a trade dispute that has reshaped North American supply chains.
Trump’s upbeat outlook contrasted with the swift realization that concrete concessions were not ready to be announced by day’s end. By late afternoon, no tariff relief had been granted, and Canadian officials signaled that negotiations would continue with a focus on steel, aluminum, and energy—alongside broader questions about how a new framework might look under the current U.S. tariff regime.
What Was Said at the Oval Office
During a brief, impromptu news conference, Trump asserted that Canada would “walk away very happy” from discussions and that Washington would “treat Canada fairly” on trade. Carney stood nearby as aides from both sides laid out the next steps, emphasizing the importance of securing a deal that benefits both economies and reduces uncertainty for workers in sensitive sectors.
Canada’s delegation, led by Carney and including Trade Minister Dominic LeBlanc, portrayed Tuesday’s talks as meaningful and productive, though they stopped short of announcing a breakthrough. LeBlanc stressed that progress has been achieved, but cautioned that many details remained to be negotiated as officials agreed to continue conversations in Washington and beyond.
Key Sectors Under the Lens
The discussions have repeatedly circled back to core industries most exposed to tariff policy: steel and aluminum, where U.S. measures have raised costs for Canadian producers, and energy, where cross-border cooperation remains essential. The two countries have also signaled a willingness to consider how any agreement might align with the broader Canada-U.S.-Mexico Agreement (CUSMA), which currently governs most trade between the partners but could be revisited next year.
Analysts note that any final pact is likely to involve a mix of tariff relief, quotas, and rules that shape how Canadian products enter the American market. The challenge for negotiators is to craft a package that preserves broader trade ties while addressing U.S. concerns about national security, domestic production, and supply chains.
Political Dynamics in Play
As the White House tempers expectations, Canada faces economic headwinds tied to tariffs already in place. Ontario’s manufacturing sector, as well as aluminum and forestry industries, have experienced job and investment pressures, amplifying the stakes for a timely resolution. Canadian policymakers, including opposition figures, have pressed for tangible wins on tariffs to protect jobs and maintain confidence in the broader trade framework that benefits Canadian exporters.
Trump has repeatedly framed the negotiations as a competitive test—stating that he seeks to strengthen domestic production while preserving fair access for Canadian goods. Brisk talk of potential renegotiations to the broader North American trade pact underscores the long horizon of this dispute, with both sides signaling openness to further talks at a high level in the weeks ahead.
What Comes Next
Tuesday’s discussions left negotiators with a clear directive: continue the dialogue, land deals that produce greater certainty, and avoid destabilizing market shocks. Carney’s absence from a formal press conference in Washington did not dampen the message that progress is possible, even if it remains elusive for now.
With the two leaders publicly praising each other’s leadership while challenging one another on terms, observers will be watching for concrete concession lists and timelines. If a framework emerges, it could set the tone for how North American trade unfolds in the near term, balancing national interests with the enduring importance of cross-border commerce.
