Carney says trade talks with Trump to resume 'when it matters'

November 24, 2025

Canadian Prime Minister Mark Carney has downplayed the urgency of resuming trade negotiations with the United States, stating talks will restart when appropriate despite strained relations with President Trump. The trade discussions stalled after Trump objected to an Ontario advertisement featuring Ronald Reagan criticizing tariffs, though he has not yet implemented a threatened additional 10% levy on Canadian goods. With three-quarters of Canadian exports going to the US and no current trade deal in place, Carney is pursuing alternative partnerships to reduce Canada's economic dependence on its southern neighbor.

Who is affected

Canadian Prime Minister Mark Carney
President Donald Trump
Canadian exporters and businesses (particularly in metals and automobile sectors)
The province of Ontario
Conservative leader Pierre Poilievre
Indian Prime Minister Narendra Modi
President Sheikh Mohamed bin Zayed Al Nahyan of the UAE
Canadian workers in sectors facing high tariff levies

What action is being taken

Canada is seeking to lower sector-specific tariffs imposed by the US
Carney is working to diversify Canada's trade away from the US
Canada has begun negotiations on a trade deal with India
Discussions are ongoing regarding a critical minerals deal with the UAE

Why it matters

This matters because Canada's economy is extremely vulnerable with three-quarters of its exports going to the US, yet it remains the only G7 nation without a current trade deal with America. The significant sector-specific tariffs (50% on metals, 25% on automobiles) are causing substantial economic harm to Canadian industries and workers. Carney's pivot toward trade partnerships with India and the UAE represents a major strategic shift that could reshape Canada's economic relationships, though it involves engaging with countries that have faced serious international criticism.

What's next

Trade talks with the US could resume "probably in the next two weeks"
Carney is expected to visit India next year
Canada and the UAE expressed hopes of significantly increasing trade in the coming years

Read full article from source: BBC