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Canadian PM to visit White House to talk tariffs

by Emma R.
2 months ago
in General News
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Canadian Prime Minister Mark Carney (left) in June canceled a tax targeting American tech giants under pressure from US President Donald Trump (right), who called it outrageous. ©AFP

Montreal (AFP) – Canadian Prime Minister Mark Carney is slated to visit Washington again Tuesday in hopes of convincing President Donald Trump to ease US tariffs that are negatively impacting Canada’s economy. In Carney’s “working visit” to the White House — his second trip since winning office in April — the 60-year-old former banker seeks to restore bilateral relations and discuss “shared priorities in a new economic and security relationship between Canada and the US,” Ottawa said in a statement.

White House spokeswoman Karoline Leavitt confirmed the visit, saying Monday: “I’m sure trade will be a topic of discussion tomorrow, and all of the other issues that are facing both Canada and the United States.” Unlike other US allies, such as the European Union, Canada has not yet cut a deal for a comprehensive trade agreement with its neighbor. The United States is Canada’s main economic partner, with 75 percent of Ottawa’s exports being sold across its southern border. Canada saw its GDP decline by 1.5 percent in the second quarter, adding to the economic pressure. Trump has already imposed tariffs on lumber, aluminum, steel, and automobiles. On Monday, he announced 25 percent tariffs on heavy trucks starting November 1.

For now, the vast majority of trade remains protected by the USMCA, a free-trade agreement between the United States, Canada, and Mexico. But the agreement faces renegotiation soon, and the Republican president has already called for a revision that would favor American industries.

– Mounting pressure – As a former central banker who entered politics less than a year ago, Carney faces growing criticism domestically, where he campaigned on his extensive crisis management experience. Six months later, “pressure is mounting to, at minimum, secure a reduction in certain tariffs, like those on steel and aluminum,” said Daniel Beland, a political scientist at McGill University in Montreal.

“Mark Carney has no choice, he must return from Washington with progress,” he added, noting Carney has already made several concessions without getting anything in return. At the end of June, Carney canceled a tax targeting American tech giants under pressure from Trump, who called it outrageous. He also lifted many of the tariffs imposed by the previous government, but Washington’s lack of reciprocal response to these moves has sparked strong criticism from the opposition in Canada.

“If you return with excuses, broken promises, and photo ops, you will have failed our workers, our businesses, and our country,” conservative opposition leader Pierre Poilievre wrote in an open letter to Carney on Monday. While Canadians await outcomes, “they are also aware there’s always a risk when negotiating with Donald Trump. These meetings can easily go off track, and everything plays out publicly,” said Genevieve Tellier, a political scientist at the University of Ottawa.

Last week, the 79-year-old American president repeated his desire to make Canada “the 51st state” during a speech to US generals and admirals, referencing the country’s potential participation in a new “Golden Dome” missile shield. “Canada called me a couple of weeks ago, they want to be part of it,” Trump claimed. “To which I said, well, why don’t you just join our country” and “become the 51st state, and you get it for free.”

© 2024 AFP

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