Carney to meet Trump in search of 'best deal for Canada'

October 7, 2025

Canadian Prime Minister Mark Carney is visiting Washington for his second meeting this year with President Trump, primarily to advance stalled trade negotiations. Despite missing an August deadline, Canada has less urgency than other G7 nations due to exemptions under the USMCA trade agreement. The visit occurs amid renewed statements from Trump about making Canada a U.S. state and pressure from opposition leader Pierre Poilievre, who claims not securing a deal would be a failure.

Who is affected

Canadian businesses and workers, especially in steel and lumber sectors facing punishing U.S. tariffs
Canadian economy overall, with 75% of goods sold to the U.S. and thousands of jobs already lost in vulnerable sectors
Canadian tourists, with data showing seven consecutive months of decline in Canadians visiting the U.S.
Canadian public, with 60% believing Canada can never trust the U.S. the same way again according to an Ipsos poll

What action is being taken

Prime Minister Carney is visiting Washington for a "working visit" focused on finding common ground on economy and security
Canada-US Trade Minister Dominic LeBlanc reports that "progress" is being made toward an agreement
Carney has been visiting allies like the UK and Mexico to shore up support and find new markets
The Canadian government is ramping up "nation-building" projects to improve Canada's economic output
Consultations are beginning ahead of an upcoming review of the USMCA free trade agreement

Why it matters

The U.S. has imposed a 35% levy on Canadian imports, with additional sector-specific levies including 50% on metals and 25% on vehicles
If implemented at full force, U.S. tariffs have the potential to "rupture" Canada's economy
Only 85% of Canada's trade with the U.S. remains duty-free under the USMCA exemption
The U.S. may be seeking commitments beyond trade, including defense cooperation, border security, and possible participation in the Golden Dome missile defense system
The USMCA trade agreement review is approaching, with signals that the U.S. may conduct separate reviews with Canada and Mexico

What's next

No explicit next steps stated in the article

Read full article from source: BBC