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WASHINGTON \u2014 President Donald Trump said Tuesday that he was open to extending the free trade agreement with Mexico and Canada through a renegotiation or seeking \u201cdifferent deals\u201d as he met with Canadian Prime Minister Mark Carney at the White House.<\/p>\n
Carney made his second visit to the Oval Office ahead of next year\u2019s review of the United States-Mexico-Canada Agreement and as one of the world\u2019s most durable and amicable alliances has been fractured by Trump\u2019s trade war and annexation threats.<\/p>\n
The free trade agreement was enacted during Trump\u2019s first term, and it allows the majority of Canadian and Mexican goods to be shipped to the U.S. without tariffs. But Trump has made it clear since returning to office that he wants to reshape the relationship, and he expressed ambivalence over the process as long as he feels like he\u2019s able to improve America\u2019s position.<\/p>\n
\u201cWe could renegotiate it, and that would be good, or we can just do different deals,\u201d he said. \u201cWe\u2019re allowed to do different deals if we want. We might make deals that are better for the individual countries.\u201d<\/p>\n
The remarks suggested that Trump is willing to let uncertainty over the agreement\u2019s future linger.<\/p>\n
Carney entered the visit hoping to find some relief on sector-specific tariffs. There is fear in Canada over what will happen to the U.S.-Mexico-Canada Agreement, which is critical to Canada\u2019s economy. More than three-quarters of Canada\u2019s exports go to the U.S.<\/p>\n
Trump showed a fondness for Carney \u2014 something he didn\u2019t have toward Carney\u2019s predecessor, Justin Trudeau \u2014 but noted there was a \u201cnatural conflict\u201d between the two countries, a point to which the prime minister politely disagreed.<\/p>\n
\u201cWe want Canada to do great,\u201d Trump said. \u201cBut you know, there\u2019s a point at which we also want the same business.\u201d<\/p>\n
Asked why the U.S. and Canada had failed to reach a deal on trade, Trump said it\u2019s a complicated situation.<\/p>\n
\u201cWe have natural conflict,\u201d he said. \u201cWe also have mutual love.\u201d<\/p>\n
Carney said he wouldn\u2019t use the word \u201cconflict.\u201d<\/p>\n
\u201cThere are areas where we compete, and it\u2019s in those areas where we have to come to an agreement that works. But there are more areas where we are stronger together, and that\u2019s what we\u2019re focused on.\u201d<\/p>\n
Trump\u2019s talk of making Canada the 51st state and his tariffs have Canadians feeling an undeniable sense of betrayal. The U.S. president made a joking reference to a \u201cmerger\u201d between the two countries at the top of his remarks Tuesday.<\/p>\n
Relations with Canada\u2019s southern neighbor and longtime ally are at a low point.<\/p>\n
\u201cWe\u2019ve had ups and downs, but this is the lowest point in relations that I can recall,\u201d said Frank McKenna, a former Canadian ambassador to the United States and current deputy chairman of TD Bank.<\/p>\n
\u201cI talk every day to ordinary citizens who are changing their vacation plans, and I talk to large business owners who are moving reward trips away or executive business trips,\u201d McKenna said. \u201cThere is an outright rebellion.\u201d<\/p>\n
Carney has said the USMCA is an advantage for Canada at a time when it is clear that the U.S. is charging for access to its market. Carney has said the commitment of the U.S. to the core of USMCA means that more than 85% of Canada-U.S. trade continues to be free of tariffs. He said the U.S. average tariff rate on Canadian goods is 5.6% and remains the lowest among all its trading partners.<\/p>\n
But Trump has some sector-specific tariffs on Canada, known as Section 232 tariffs, that are having an impact. There are 50% tariffs on steel and aluminum imports, for example.<\/p>\n
After the meeting, Dominic LeBlanc, the minister responsible for Canada-U.S. trade, described the talks as \u201csuccessful\u201d and \u201cpositive\u201d on trade issues, though he noted the conversation would be continuing. He said Canada was looking to get a deal done quickly on steel and aluminum.<\/p>\n
Vice President JD Vance hosted Carney for dinner Tuesday evening, according to an official familiar with the matter. The official spoke on condition of anonymity as they were not authorized to speak publicly on the matter.<\/p>\n
The ties between the two countries are without parallel. About $2.5 billion (nearly $3.6 billion Canadian) worth of goods and services cross the border each day. Canada is the top export destination for 36 U.S. states. There is close cooperation on defense, border security and law enforcement, and a vast overlap in culture, traditions and pastimes.<\/p>\n
About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports are from Canada.<\/p>\n
Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security.<\/p>\n
\u201cThe bigger prize would be getting a mutual agreement to negotiate as quickly as possible the free trade relationship,\u201d McKenna said. \u201cIf the United States were to threaten us with the six months\u2019 notice of termination, I think it would represent a deep chill all across North America.\u201d<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n