Canadian Prime Minister Mark Carney is set to meet with U.S. President Donald Trump in Washington on Tuesday, marking his second visit to the U.S. capital this year. The primary focus of the meeting is to revive stalled trade negotiations between the two nations, which have dragged on past an August deadline. Despite the prolonged discussions, few details have emerged about the sticking points preventing a deal. Canada remains the only G7 country without a trade agreement with the Trump administration this year, though Ottawa is not in a rush due to exemptions under the US-Canada-Mexico Free Trade Agreement (USMCA).
Trump has recently reignited controversial rhetoric, suggesting Canada should become the 51st U.S. state, while Carney faces domestic pressure to secure a deal that would lower tariffs, particularly for sectors like steel and lumber. Canadian Trade Minister Dominic LeBlanc has indicated progress toward an agreement, with media reports suggesting potential relief from U.S. steel tariffs. However, insiders express frustration over the lack of clarity from the White House regarding the terms of a potential trade and security deal.
Carney’s visit is framed as a ‘working visit’ aimed at finding common ground on economic and security issues, though no major breakthroughs are anticipated. Experts note that face-to-face discussions with Trump, who values personal relationships, could help ease the trade stalemate. Meanwhile, Carney has faced criticism for softening his initially aggressive stance toward the Trump administration, making concessions such as dropping retaliatory tariffs and withdrawing long-standing legal disputes.
The meeting coincides with the upcoming review of the USMCA, with U.S. Trade Representative Jameison Greer signaling that the review may be conducted separately with Canada and Mexico. U.S. Ambassador to Canada Pete Hoekstra has expressed frustration with Canadians’ discontent toward the U.S., highlighting the challenges in fostering a passionate bilateral relationship. Public sentiment in Canada has soured, with tourism data showing a decline in Canadian visits to the U.S. and polls indicating a loss of trust in the U.S.-Canada relationship.
As Carney navigates these complexities, he has spent the summer strengthening ties with allies like the UK and Mexico to diversify Canada’s trade options. Domestically, he has focused on long-term economic projects to bolster Canada’s output. However, there is broad consensus across Canada’s political spectrum that a deal with the U.S. is essential to protect the economy, given that 75% of Canadian exports are destined for the U.S. market. The outcome of Tuesday’s meeting could have significant implications for Canada’s economic future.