How Mark Carney's first White House visit could shape Canada's economic future
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Prime Minister Mark Carney will be watched closely by Canadians infuriated by Donald Trump — and by an anxious business community looking for tariff relief — when he meets with the U.S. president Tuesday in Washington.
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After months of Trump's annexation threats, the newly elected prime minister will be tasked with a delicate balancing act — showing strength while maintaining Canada's place in a critical North American trade pact the president's tariffs have sought to upend.
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The Canada-U.S.-Mexico Agreement on trade, called CUSMA, was negotiated during the first Trump administration. Trump at the time called it the best deal ever and Canadian officials declared it a victory for Canada.
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CUSMA is up for review next year — but after Trump's return to the White House, it quickly became clear the president intended to rattle the continental trade pact.
Canada and Mexico were hit early with tariffs the president linked to the flow of fentanyl and people across the borders. U.S. government data shows a tiny volume of fentanyl is intercepted at the U.S.-Canada border. Both countries were also hit by Trump's steel, aluminum and automobile duties.
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Trump's provocations included calling then-prime minister Justin Trudeau a 'governor' and saying the country would be better off as a U.S. state.
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While the duties alarmed America's closest neighbours, signs have emerged that the president still values CUSMA — a key achievement of his first administration.
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When Trump took his trade war to the world with 'reciprocal' tariffs in early April, Canada and Mexico weren't included. Trump paused the largest of those duties for 90 days, saying it would allow time to negotiate deals, but kept in place a 10 per cent universal tariff on most imports to the U.S.
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'If you read the tea leaves, Canada and Mexico seem to have been set aside… Hopefully that means that the administration is going to be looking at (CUSMA) as a package,' said Laura Dawson, an expert on Canada-U.S. relations and the executive director of the Future Borders Coalition.
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Tuesday's meeting could provide insights into Trump's plan for what was once one of the most stable and friendly bilateral relationships in the world. Trump last week described Carney as 'a very nice gentleman' and said he expects to have a 'great relationship' with Canada.
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