Canada’s Carney makes second White House visit as trade tensions loom

Canada’s Prime Minister Mark Carney is on his second visit to the White House in five months as he deals with increasing pressure to address US tariffs on steel, autos and other goods that are hurting Canada’s economy.

Carney and United States President Donald Trump met at the White House on Tuesday.

“From the beginning, I liked him, and we’ve had a good relationship,” Trump told reporters in the Oval Office, sitting next to Carney.

“We have natural conflict. We also have mutual love … you know we have great love for each other,” he added, saying the two men would discuss tariffs including potentially lowering tariffs on key Canadian sectors as part of efforts to ease trade tensions between Washington and Ottawa.

More than 77 percent of Canada’s exports go to the US.

A Canadian government official and several analysts played down the chances of an imminent trade deal with Trump and said the mere fact that discussions are continuing should be considered a success for Carney.

Among the topics up for discussion are trade and the United States-Mexico-Canada Agreement (USMCA), which is critical to Canada’s economy and is up for a review next year.

Trump said he was willing to revisit the free trade agreement, which was enacted during his first term, or seek “different deals.”

“We could renegotiate it, and that would be good, or we can just do different deals,” he said. “We’re allowed to do different deals.”

Trump exhibited a fondness for Carney, something he didn’t display toward Carney’s predecessor, Justin Trudeau. He described Carney as a “world-class leader” and said he’s a tough negotiator.

The prime minister last visited the Oval Office in May, when he bluntly told Trump that Canada would never be for sale in response to Trump’s repeated threat to purchase or annex Canada.

Since then, the prime minister has made numerous concessions to Canada’s biggest trading partner, including dropping some counter tariffs and scrapping a digital services tax aimed at US tech companies.

Carney’s office has said the working visit will focus on forging a new economic and security relationship with the US.

“In areas where we compete, we have to come to an agreement that works, ” Carney said.

White House spokeswoman Karoline Leavitt said on Monday: “I’m sure trade will be a topic of discussion … and all of the other issues that are facing both Canada and the United States.”

While the majority of Canada’s exports are entering the US tariff-free under the USMCA, tariffs have pummeled Canada’s steel, aluminium and auto sectors and a number of small businesses.

“The reality is that right now, Canadian products have among the lowest tariff rate,” said Jonathan Kalles, a former adviser to Carney’s predecessor, Trudeau. “You don’t want to poke the bear when things could be much worse,” he said, adding that any meeting with Trump is a calculated risk.

“Carney will probably get a better deal through private negotiations, not the pomp and ceremony of going to the White House,” he said.

Growing pressure

Carney won an election in April promising to be tough with Trump and secure a new economic relationship with the US.

Shachi Kurl, president of the Angus Reid Institute, said polls show Canadians have largely been willing to give Carney time to deal with Trump.

“But that amount of time is finite,” Kurl said, noting pressure may build with job losses mounting and economic growth hobbled by US tariffs.

Canada’s opposition leader, Pierre Poilievre, has criticised Carney’s approach to Trump, noting the prime minister’s earlier pledge to “negotiate a win” by July 21. He said on Monday that it did not look like Carney would accomplish much in the trip.

Dominic LeBlanc, the minister responsible for Canada-US trade, said in response that Canada has work to do on sectoral tariffs.

“Was the leader of the opposition suggesting that if the president of the United States invites us to go to Washington for a meeting and a working lunch, we should have just said ‘no’ and hung the phone up?” LeBlanc said in Parliament.

Asa McKercher, a specialist in Canada-US relations at St Francis Xavier University, said Carney’s meeting with Trump would be a success if there is any recognition that Canada has moved to address some of Trump’s persistent grievances.

Source: Aljazeera