The Canadian government is hoping to quickly conclude deals over steel and aluminum tariffs and in the energy sector following prime minister Mark Carney's meeting with US president Donald Trump at the White House on Tuesday.
Carney and Trump agreed to direct their top negotiators to hash out sectoral deals, prioritizing steel, aluminum and energy, Canadian minister in charge of trade talks, Dominic LeBlanc, told reporters following the meeting.
The leaders' meeting was "successful, positive, substantive", according to LeBlanc. Trump, specifically, directed his Cabinet members to "quickly land deals", LeBlanc said.
The White House did not immediately provide a readout of the meeting, which began with the two leaders exchanging compliments on their domestic and international accomplishments. Trump only once or twice referred to Canada as a "51st state" — this time jokingly, as a possible outcome of a "merger" between the two countries.
Trump defended his tariff policy, pointing out there was "natural conflict" between Canada and the US in terms of having the same industries, such as car manufacturing.
"Why do we make cars in Canada?" Trump asked. "It's a tough situation, because we want to make our cars here and, at the same time, we want Canada to do well making cars. So we're working on formulas, and I think we'll get there."
Trump's reference to "formulas" does not necessarily mean setting a quota for Canadian imports, LeBlanc said, without elaborating.
Carney pushed back on Trump's portrayal of the US-Canadian rivalry during the meeting at the White House.
"I wouldn't say 'conflict' — we compete," Carney said. "We are the second largest trading partner of the United States. We do a lot of trade going across the border, where we're cooperating."
Trump acknowledged during public remarks that a steel and aluminum deal between the US and Canada is a possibility, but he did not commit to one.
Canada was among the first targets of Trump's tariffs once he returned to office. US imports from Canada are subject to a 35pc tariff, with separate duties on imported cars, auto parts, steel and aluminum.
In practice, imports from Canada are taxed at the lowest rates among the top US trading partners, because the bulk of trade is exempted from tariffs under the terms of the US-Mexico-Canada free trade agreement. Energy commodities are also exempted from Trump's tariffs.
Total imports from Canada were subject to a 3pc average tariff as of August, and only 10pc of US imports from Canada are subject to any tariff at all, according to research published on Monday by the US Federal Reserve Bank of New York.
