WASHINGTON—President Donald Trump welcomed Canadian Prime Minister Mark Carney to the White House on Oct. 7 and suggested the Canadian delegation is in a better position to leave Washington with a deal.
“We’ll make some deals, and we’ll do some things that are good for both of our countries and markets,” Trump said in opening remarks before reporters.
This was Carney’s second visit to the White House. Shortly after winning the federal election on April 28, the prime minister visited Washington in early May.
As was the case during their first meeting at the White House in May, the two leaders complimented each other and echoed some of their past remarks.
During their meeting in the Oval Office, Trump said he has made Carney “very popular” and called him a “world-class leader” and “tough negotiator.” Carney was elected prime minister in April, partly on a pledge to get rid of Trump’s tariffs through negotiation.
Carney said he had been right to call Trump a “transformative” president at the previous meeting, noting how, since then, a series of major events influenced by Trump took place. The prime minister noted Trump’s impact on the U.S. economy, the pledge by NATO members to increase defense spending to 5 percent of GDP, the resolution of conflicts between India and Pakistan and Armenia and Azerbaijan, and “disabling Iran as a force of terror.”
As Carney was about to mention the “most important” part for Canada, Trump interjected and said, “the merger of Canada and the United States.” The two leaders and the room erupted in laughter, but Carney specified that this “wasn’t where he was going.” The prime minister instead mentioned Trump’s efforts to bring peace between Israel and Hamas through the 20-point plan he presented last week.
While Trump did mention merging Canada with the United States during the meeting, apparently in jest, the topic was not broached further. This was different from the first meeting between the two leaders, when Trump had expanded on his idea at length, saying the merger would be a “wonderful marriage.”
During the May meeting at the White House, Carney had politely pushed back, appealing to Trump’s experience with property development. “If I may, as you know, from real estate, there are some places that are never for sale,” Carney said, mentioning places like the White House and Buckingham Palace, to which Trump responded, “That’s true.”
On the trade front, Trump appeared more inclined to make a deal with Canada than during his previous White House meeting with Carney. In May, he had said there was nothing Carney could say to make him drop the tariffs.
“I think they’re going to be very happy,” Trump told reporters on Oct. 7 when asked whether the Canadian delegation would be leaving empty-handed.
“We have a lot of things that we’re working on that people don’t talk about.
‘Natural Business Conflict’
During the meeting, Trump acknowledged that the trade tensions between the two countries have led to prolonged negotiations as both nations are competing in similar industries. Trump called the situation a “natural business conflict.”“We’re competing for the same business. He wants to make cars; we want to make cars … and we’re in competition,” Trump told reporters.
Nevertheless, Trump said the United States will “treat Canada fairly.”
Specifically mentioning automobile and steel imports from Canada, Trump told reporters that there are areas of natural competing interests unique to the two nations due to Canada’s proximity to the United States, compared to Europe.
“It’s a tough situation, because we want to make our cars here. At the same time, we want Canada to do well making cars,” Trump said, declining to provide specifics about compromises he will offer to Ottawa.
Trump also mentioned that U.S. farmers had experienced heavy tariffs from Canada, describing it as a mutual fight.
The Trump administration has imposed 35 percent tariffs on Canadian exports for most products that do not fall under the USMCA trade agreement. But a significant portion (nearly 80–90 percent) of Canadian exports to the United States can be USMCA-compliant.
Canadian steel and aluminum have been subject to 50 percent U.S. tariffs since June. And with a 10 percent additional surcharge starting on Oct. 14, Canadian lumber will face a 45 percent levy.
Currently, Canadian automobiles and auto parts also face 25 percent tariffs, and Trump has recently announced that he would apply 25 percent tariffs on all medium- and heavy-duty trucks imported into the United States beginning on Nov. 1.