Canada's Trade Stalemate with the US: A Patient Approach

Fri Dec 05 2025 04:47:51 GMT+0200 (Eastern European Standard Time)

Amidst ongoing trade tensions, Canadian Prime Minister Mark Carney seeks a strategic delay in talks with the US, signaling confidence in Canada's position despite pressure for immediate negotiation.

Canadian Prime Minister Mark Carney expresses no rush to engage in trade negotiations with the US, asserting that discussions will resume when deemed necessary. This cautious approach, while criticized by opposition parties, reflects a belief that Canada can afford to wait out the current trade tensions, especially given upcoming US midterm elections and potential shifts in political dynamics.

Canada's Prime Minister Mark Carney appears in no rush to resume trade talks with the US. He dismissed a question over the weekend about when he last spoke to US President Donald Trump, responding: Who cares? It's a detail. I'll speak to him again when it matters.

Carney added that, in his view, there is no burning issue to raise with his US counterpart. The prime minister has faced criticism for his apparent lack of urgency, which raises the question about whether Canada is shifting its approach to trade talks with the US.

‘Great deal of posturing’

Still, Carney is considering travelling to Washington next week for the FIFA World Cup draw. Canada is a host country of the international tournament next year, along with Mexico and the US. Sources have told Canadian media that Carney and Trump could take the opportunity to meet, though nothing firm has been announced.

This is one of those negotiations where there's a great deal of posturing on both sides, said Chris Sands, director of the Center for Canadian Studies at Johns Hopkins University. Trump doesn't want to look like he needs a deal too badly. Carney doesn't want to look too desperate either, and so they kind of play each other out trying to look nonchalant. But of course, there's money on the table, and there's a lot to be negotiated.

Talks between the two countries stalled last month when Trump took offence at an anti-tariff advertisement featuring former US President Ronald Reagan, which was commissioned by the province of Ontario and aired in the US.

Tariff relief measures

In the meantime, the Carney government has signalled it will be offering financial relief to sectors impacted by US tariffs as they weather the trade storm. Relief would be welcome by Canada's aluminium producers, who have had to absorb initial tariff-related costs to meet their contractual obligations with US customers.

However, Carney is still facing pressure from others to reach a resolution quickly. Madan noted that US tariffs on heavy machinery have been felt deeply in Manitoba and that people in that sector are deeply concerned.