Canada seeks new trade partners as U.S. talks stall

Canadian Prime Minister Mark Carney stated on Saturday that his country is moving toward a trade agreement with the United States, a shift from the collapsed negotiations of August. Carney said he held a long conversation with President Donald Trump and senior administration officials before departing for Europe and Asia. He noted that while progress is being made, a final bilateral deal has not yet been reached.

The United States currently imposes 50 percent tariffs on approximately $20 billion worth of Canadian goods. These duties were imposed after Ottawa suspended talks in August over last minute demands from Washington. Canada responded in September by levying its own retaliatory tariffs. The two nations have since resumed discussions, with the possibility of reducing tariffs on key sectors such as steel and aluminum.

U.S. Trade Representative Jamieson Greer and White House Chief of Staff Stephen Miller joined the call between the two leaders. Carney emphasized that Canada will not accept a deal that weakens its auto industry, a sector that has faced heavy pressure from the current tariff structure. He added that the U.S. side has retreated from earlier demands regarding Canadian culture and French language protections.

While U.S. talks continue, Carney announced that Canada has substantially concluded free trade negotiations with the Association of Southeast Asian Nations, a bloc representing nearly 700 million people. The government estimates this pact could add nearly 2 billion Canadian dollars, or 1.4 billion U.S. dollars, to the economy and create almost 14,000 jobs. Officials expect to sign the agreement next year.

Canada also completed separate trade negotiations with the Philippines. Carney said this deal covers more than 90 percent of tariff lines. The Canadian government projects the agreement could triple exports to the Philippines by 2035. Both deals are part of a strategy to reduce reliance on the U.S. market during the ongoing trade dispute.

Carney attended a summit in Ireland before traveling to Manila for the ASEAN summit. He plans to meet President Xi Jinping at the Asia-Pacific Economic Cooperation summit in China. His administration has set a goal to double Canadian exports to countries other than the United States by 2035. These moves come as Democratic victories in the U.S. midterms have increased pressure on Congress to challenge existing tariffs.