UPDATE: Canadian Prime Minister Mark Carney is exercising caution following reports of a potential trade deal on steel and aluminum with the United States. Speaking to reporters in Ottawa, Carney stated, “I wouldn’t overplay it,” as discussions continue just ahead of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea later this month.
The Globe and Mail reported that Carney and US President Donald Trump could sign the agreement during the summit, a move that could ease tensions stemming from earlier tariffs imposed by Trump on Canadian steel, aluminum, and cars. This latest development comes after weeks of negotiations between the two nations.
Carney emphasized the importance of ongoing discussions, stating, “We’ll see. We are in ongoing discussions with the Americans.” His comments come amid heightened scrutiny over trade relations, as both countries aim to resolve long-standing tariff disputes.
While the potential deal could mark a significant step forward, sources indicate that the United States remains unwilling to negotiate on Canadian cars or softwood lumber, a sector that has faced US tariffs for decades. In exchange for a reduced US tariff, Canada may need to accept quotas on steel imports, leaving critical minerals off the table in these negotiations.
Earlier this week, Reuters reported that Canada has offered tariff relief on certain steel and aluminum products imported from both the US and China, as a strategy to support domestic businesses impacted by ongoing trade tensions.
The White House and the US Commerce Department did not respond to requests for comment outside regular business hours, intensifying the urgency and uncertainty surrounding the ongoing trade negotiations.
As Carney prepares for his meeting with Trump, the stakes are high for both nations. The outcome could reshape trade dynamics and impact industries reliant on steel and aluminum imports, making it crucial for all parties involved to navigate these discussions carefully.
With a potential agreement looming, observers are urged to stay tuned for developments as the situation unfolds leading up to the APEC summit. The trade implications for both Canada and the US, as well as the broader economic impact, could be profound.
