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The Markets
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Finance

Carney, Trump clash over trade in first White House meeting since Canadian election

Canadian Prime Minister Mark Carney met with US President Donald Trump at the White House on Tuesday, marking their first in-person encounter since Carney's election and signaling a tense new phase in cross-border relations amid renewed trade friction.

In a meeting characterized by sharp policy differences and unscripted moments of levity, Trump reiterated his position that the United States does not need Canadian exports such as automobiles, steel, and aluminum — a stance that drew a swift rebuttal from Canadian officials and former diplomats.

“These are not true statements,” said Frank McKenna, Canada’s former ambassador to the U.S. “We produce about 10 percent of the autos in North America,” he said, adding that US industry depends on Canadian oil, gas, and potash — commodities currently subject to 10% tariffs outside the countries’ free trade agreement.

Carney and Trump are expected to discuss a review of the Canada-United States-Mexico Agreement (CUSMA), scheduled for 2026. Carney said the trade pact should form the basis for broader negotiations, noting that “some things about it are going to have to change.”

During the televised Oval Office session, Trump remained defiant on tariffs. Asked if Carney could say anything that would prompt him to lift duties on Canadian goods, Trump replied flatly, “No.”

“It’s just the way it is,” he added, repeating his claim that the US is effectively subsidizing Canada by $200 billion annually — a figure that remains unsubstantiated by official trade data. The US Census Bureau reported a bilateral trade deficit of just over $63 billion in 2023.

Carney defended Canada’s contributions to the trade relationship, calling the US Canada’s “largest client” and emphasizing the importance of the countries’ integrated auto sectors.

Trump pushed back. “We want to make our own cars. We don’t really want cars from Canada,” he said. “We don’t want Canadian steel, and we don’t want Canadian aluminum.”

Still, the two leaders struck a civil tone at times. Trump praised Carney’s election win, calling it “one of the greatest comebacks … maybe even better than mine,” and referred to the new prime minister as “a very talented person.”

Carney responded with measured diplomacy, thanking Trump for his hospitality and calling him a “transformational president” with a “relentless focus on the American worker.”

The meeting also veered into unexpected territory when asked about Canada potentially becoming the 51st US state. “Never say never,” Trump said.

“As you know from real estate, there are some places that are never for sale,” Carney added. Trump replied, “That’s true.”

Both leaders signaled that while relations remain rocky, neither side appears ready to walk away from CUSMA.

The meeting sets the tone for what could be a challenging path forward as both governments prepare for a possible overhaul of their economic partnership in the years ahead.

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