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Canada's Carney downplays urgency in stalled US trade negotiations
Canadian Prime Minister Mark Carney dismissed questions about his recent communication with US President Donald Trump on Sunday, stating that trade talks would resume "when it's appropriate"-not on a fixed timeline. Speaking on the sidelines of the G20 summit in Johannesburg, Carney deflected inquiries about his last conversation with Trump, calling it "a detail" and adding, "I'll speak to him again when it matters."
The remarks follow a month-long stall in negotiations after Trump took offense at a Canadian anti-tariff advertisement featuring Ronald Reagan. The 1987 clip, used in an ad by Ontario's provincial government, showed Reagan arguing that tariffs would harm the US economy-a message Trump interpreted as a direct critique of his policies. Despite the friction, Trump has yet to impose an additional 10% tariff on Canadian imports, a threat first issued in response to the ad.
Tariffs strain Canada-US economic ties
Canada remains the only G7 nation without a trade deal with the US, despite being one of its largest trading partners. The US currently imposes a 35% levy on most Canadian goods, though exemptions under the existing free trade framework limit its scope. Sector-specific tariffs-including 50% on metals and 25% on automobiles-have further strained relations, prompting Ottawa to push for reductions.
Critics, including Conservative leader Pierre Poilievre, accused Carney of underestimating the urgency. "It's tough luck for the sectors hit hardest by these levies," Poilievre wrote in a social media post. With three-quarters of Canada's exports sold to the US, the economy's vulnerability to trade disruptions has sharpened calls for resolution.
Carney pivots to India, UAE amid diversification push
Against the backdrop of US tensions, Carney has accelerated efforts to diversify Canada's trade partnerships. Over the weekend, he and Indian Prime Minister Narendra Modi announced the launch of negotiations for a long-awaited trade deal, marking a thaw after relations froze in 2023 following the killing of a Sikh separatist leader in Vancouver-an incident that tested diplomatic ties.
Carney also met with UAE President Sheikh Mohamed bin Zayed Al Nahyan late last week, unveiling progress on a critical minerals agreement. Both nations expressed optimism about expanding trade, though the UAE faces scrutiny over allegations-denied by Abu Dhabi-of arming Sudan's Rapid Support Forces (RSF) in its civil war. Carney acknowledged "sources of friction" with India but called it a "reliable trading partner," while noting the UAE's role in aid deliveries to Gaza.
Balancing partnerships amid criticism
Carney's outreach to the UAE and India has drawn criticism, with opponents questioning deeper ties to nations accused of interfering in Canadian affairs. The prime minister, however, framed the engagements as pragmatic. "There will be friction," he said of India, while praising the UAE's cooperation on humanitarian issues. He is slated to visit India in 2026.
On the US front, Carney hinted at a potential restart to talks "probably in the next two weeks," though no formal schedule has been set. The delay leaves Canadian exporters in limbo as tariffs continue to bite.
