Prime Minister Mark Carney announced on Friday that Canada is prepared to resume trade talks with the United States after President Donald Trump halted discussions due to an anti-tariff advertisement from Ontario’s provincial government. Trump ended the talks following the release of a video featuring former President Ronald Reagan, which argued that tariffs lead to trade wars and economic issues. Trump labeled the ad as fraudulent in a late-night social media post.
Carney has attempted to negotiate a deal to lower import tariffs on steel, aluminum, and autos during two visits to the White House, as these tariffs have negatively affected Canada’s economy. Before leaving for his first official trip to Asia, Carney stated that his team has been engaged in positive discussions with American counterparts regarding specific sectors. Although Carney had lifted most of the retaliatory tariffs on U. S. imports introduced by the previous government, White House adviser Kevin Hassett expressed that frustrations over the negotiations with Canada had grown due to their perceived lack of flexibility.
Additionally, Trump accused Canada of attempting to sway the U. S. Supreme Court as it prepares to consider the legality of his broad global tariffs. The Ronald Reagan Presidential Foundation criticized the advertisement for misrepresenting Reagan’s address, claiming that it was selectively edited without permission. The ad highlights Reagan’s belief that tariffs, despite appearing patriotic, ultimately harm American workers and consumers.
In response to reduced manufacturing from General Motors and Stellantis, Canada also decreased tariff-free import quotas for these companies. Trump’s trade actions have significantly raised U. S. tariffs, sparking concerns among businesses and economists. In anticipation of a review of the 2020 continental free-trade agreement next year, Carney acknowledged the shift in U. S. trade policy, expressing readiness to continue discussions beneficial for workers in both nations.
With information from Reuters