Trump and Carney speak ahead of US tariff deadline

What the report says

Canadian Prime Minister Mark Carney spoke by phone with US President Donald Trump on Monday afternoon as Ottawa tried to secure a last-minute agreement to prevent new US tariffs from taking effect, Carney’s office said. The call came ahead of a Wednesday midnight deadline, and the office did not provide further details. Carney told reporters the talks were “intense and delicate,” underscoring how sensitive the negotiations remain.

According to the report, the planned US tariffs would apply to about $20bn in imports and would be set at 50 percent. They would affect Canadian goods even if they qualify under the US-Mexico-Canada trade agreement, which has previously protected much of Canadian industry from earlier tariff rounds. The article also notes that the two countries have long had trade disputes, but that tensions have intensified under Trump’s second term as tariffs have become a central policy tool.

The main sticking points include automotive tariffs. Reuters reported that the two sides have discussed lowering US Section 232 tariffs on Canadian vehicles from 25 percent to 15 percent, with further reductions tied to US content in the vehicles. Canada wants North American content counted, while Washington wants only US-produced content counted. Industry officials warn the new tariffs could hurt lumber, wine and dairy sectors and may lead to job losses or business closures.