Carney says more work to do on U.S. trade talks after negotiators return from Washington

Prime Minister Mark Carney has reported “some progress” following trade negotiations in Washington this week, though he noted that “lots more to do” remains before a comprehensive agreement is reached.

The comments followed a detailed briefing provided by Canada-U.S. Trade Minister Dominic LeBlanc and chief trade negotiator Janice Charette to a special advisory council. The session focused on their recent meetings with U.S. Trade Representative Jamieson Greer.

The State of CUSMA Negotiations

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association and a member of the advisory committee, described the briefing as “very candid.” He indicated that conversations appear to be moving in the right direction.

According to Volpe, instructions from the White House seem to be to “find a way” to address specific irritants while remaining within the trade relationship. However, he noted there has been no “specific confirmation” that the Trump administration will renew the pact.

Did You Know? Canada and Mexico have both submitted letters expressing their desire to renew the CUSMA agreement for an additional 16 years.

North America’s free trade deal is scheduled for review on July 1. While this date is not viewed as a hard deadline, it serves as a signal of intent; if the three nations do not unanimously agree to renew, the pact could trigger annual reviews.

Addressing Trade “Irritants”

The U.S. Has provided Canada with a list of concerns, which Volpe stated contained no “surprises” and was shorter than the list provided to Mexico. These irritants include the treatment of Montana power producers and Canadian provinces restricting American alcohol from shelves.

Tensions have also centered on Canada’s Online Streaming Act. In response, the government directed the CRTC on Wednesday to review a decision to increase the funds that streaming services, such as Netflix, must contribute to Canadian content.

Expert Insight: Samantha Carter notes that the shift in tone—described as parties wanting to “get somewhere together” rather than a “first salvo in a divorce”—suggests a strategic preference for stability over dissolution, provided Canada can mitigate specific U.S. Grievances.

The Impact of Sectoral Tariffs

A primary point of contention remains the “national security and emergency tariffs” imposed by President Donald Trump. These “Section 232” tariffs on Canadian steel and aluminum were doubled to 50 per cent one year ago.

Carney says US "violated" CUSMA; trade talks at "negotiations about negotiations" stage

The Canadian Steel Producers Association has called for the removal of these levies after shipments to the U.S. Dropped by 60 per cent last year. Candace Laing, CEO of the Canadian Chamber of Commerce, described these tariffs as the “biggest splinter” or “thorn” in Canada’s side.

Political Friction and Future Outlook

The negotiations have drawn criticism from Conservative Leader Pierre Poilievre, who claims the government has been “losing, losing, losing” on trade promises. Conservative MP Mark Strahl added that the government has failed to make the CUSMA issue a priority.

Looking forward, Canada may seek resolution through specific proposals already made to the U.S. Administration regarding critical minerals, automobiles, and aluminum. Global Affairs Canada also indicated that discussions continue regarding a proposed U.S. Levy over forced labour.

While there is optimism about finding a path forward, officials warn that the environment remains “very unpredictable.” Future progress may depend on resolving current irritants before moving to the next level of talks.

Frequently Asked Questions

What happens if CUSMA is not renewed by July 1?
The agreement remains in “full force,” but a lack of unanimous agreement to renew would trigger annual reviews.

What are the primary “irritants” cited by the U.S.?
The U.S. Has cited the Online Streaming Act, the restriction of American alcohol in some Canadian provinces, and the treatment of Montana power producers.

How have the Section 232 tariffs affected Canadian industry?
After tariffs on steel and aluminum were increased to 50 per cent, shipments from Canada to the U.S. Decreased by 60 per cent last year.

How should Canada balance its domestic cultural policies, like the Streaming Act, with the need to maintain a stable trade relationship with the U.S.?