The Canadian government said that during Carney’s “working visit”, he sought to restore bilateral relations and discuss “shared priorities in a new economic and security relationship between Canada and the US”.
Unlike other US allies such as Britain and the European Union, Canada has not yet cut a deal for a comprehensive trade agreement with its North American neighbour.
The United States is Canada’s main economic partner, with 75 per cent of Canada’s exports being sold across its southern border. Canada saw its GDP decline by 1.5 per cent in the second quarter, adding to the economic pressure.
Trump has already imposed tariffs on lumber, aluminium, steel and automobiles. On Monday, he announced 25 per cent tariffs on heavy trucks starting Nov 1.
For now, the vast majority of trade remains protected by the USMCA, a free-trade agreement between the United States, Canada and Mexico.Â
But the agreement faces renegotiation soon, and Trump has already called for a revision that would favour US industries.
Source: CNA
