Ottawa seeks breakthrough on US tariffs as Carney’s high-stakes visit tests cross-border strategy
Canadian steel, aluminum, and lumber sectors could see pivotal movement as Prime Minister Mark Carney heads to Washington next week for a high-stakes meeting with US President Donald Trump.
Multiple government sources told BNN Bloomberg that this encounter may shape the near-term outlook for cross-border trade and investment.
The Canadian team is described as “cautiously optimistic” that an agreement on steel and aluminum tariffs could emerge from the talks, following weeks of groundwork by senior officials.
Carney’s visit comes as US tariffs on Canadian steel and aluminum have climbed to 50 percent, with Canada imposing a 25 percent counter-tariff in response, as reported by BNN Bloomberg.
The US also recently imposed a 10 percent levy on softwood lumber and a 25 percent tariff on cabinets and furniture, with the total tariff level on lumber now exceeding 45 percent, according to The New York Times.
These sectoral tariffs have contributed to a 7.1 percent unemployment rate in Canada as of August, the highest since May 2016 outside the pandemic period, as per CNN.
Trade Minister Dominic LeBlanc told the Senate’s Foreign Affairs and International Trade Committee that he remains hopeful for progress, stating he is “not seeing a dead end” in discussions with the US, though he cautioned that the relationship may not “magically go back to what it may have been a year ago or 25 years ago”.
LeBlanc also emphasized that Canada seeks a tariff agreement separate from the ongoing CUSMA renegotiation.
Despite some optimism, industry stakeholders and policy experts remain sceptical that a breakthrough is imminent.
“The United States’ position right now is that the status quo is working for them,” said Eric Miller, president of Rideau Potomac Strategy Group, to CTV News.
The Aluminum Association of Canada does not expect an agreement from the meeting but stresses that a resolution before the CUSMA review is critical.
Carney has made several concessions, including rescinding a digital services tax and withdrawing many retaliatory tariffs, but these moves have not yet produced reciprocal action from the US, as noted by The New York Times.
Conservative Leader Pierre Poilievre has criticized Carney for missing his self-imposed deadline to secure a deal, stating, “He promised that he would negotiate a win with the United States by July 21. Where’s the win?”.
