Leaders discuss tariffs and trade deal as US annexation rhetoric rattles Canadian exporters
The threat of US annexation and ongoing tariff battles took centre stage as Prime Minister Mark Carney and US President Donald Trump concluded a high-stakes meeting in Washington, leaving Canadian markets and cross-border businesses watching for any sign of relief or escalation.
According to BNN Bloomberg, Trump once again floated the idea of a “merger of Canada and the United States” and hinted at using “economic force” to accomplish annexation, a theme that has dominated headlines and contributed to a 23 percent decline in Canadian visits to the US so far this year.
The rhetoric comes as both countries remain locked in a trade dispute, with Trump imposing sweeping tariffs on Canadian steel, aluminum, copper, autos, and more, citing border security and other concerns.
As reported by CNN, Carney entered the talks with low expectations of securing immediate tariff relief, but left with assurances from Trump that the Canadian delegation would “walk away happy”—though no specifics were offered.
Canadian Trade Minister Dominic LeBlanc described the meeting as “successful,” “positive,” and “effective,” but acknowledged that tangible results remain elusive and further discussions are planned.
The uncertainty surrounding the future of the Canada- US-Mexico Agreement (CUSMA/USMCA) is a critical concern for Canadian exporters.
Trump, as reported by Al Jazeera, has signalled he is willing to renegotiate the agreement or pursue “different deals,” raising the stakes for sectors reliant on cross-border trade.
More than 77 percent of Canadian exports go to the US, and the imposition of tariffs has already impacted key industries, including steel, autos, and lumber.
According to CNN, the Canadian unemployment rate has climbed to 7.1 percent, the highest in nine years, with tariffs on cars, steel, and aluminum exacerbating economic pressures.
Carney’s government has responded by dropping some counter-tariffs, scrapping a digital services tax, and introducing a US$1.3bn border plan, but sector-specific relief remains a top priority.
Industry voices, such as Ontario Premier Doug Ford, have underscored the importance of reaching a deal, noting that US industries rely heavily on Canadian aluminum, steel, and lumber.
Ford warned that the ongoing dispute is like “a kid going in the school yard and getting punched in the face every day,” and called for decisive action if no agreement is reached.
Opposition leader Pierre Poilievre has criticized Carney’s approach, pointing to missed deadlines and ongoing tariffs as evidence of unmet promises.
