Canada's Strategy: Navigating the Trade War with the US

Fri Dec 05 2025 14:37:00 GMT+0200 (Eastern European Standard Time)

As tensions rise between Canada and the US over trade issues, Prime Minister Mark Carney takes a nonchalant approach, questioning the need for urgent negotiations. This article explores the implications and potential outcomes of Canada's trade strategy amidst the ongoing conflict.

Canadian Prime Minister Mark Carney has been dismissive of questions regarding trade talks with the US, suggesting there's no immediate need for dialogue. Despite facing criticism for his lack of urgency, Carney's administration is actively seeking ways to mitigate the impact of US tariffs and prioritize broader trade opportunities. Meanwhile, Carney may meet President Trump soon as both nations prepare for upcoming events.

Canada's Prime Minister Mark Carney appears in no rush to resume trade talks with the US. He dismissed a question over the weekend about when he last spoke to US President Donald Trump, responding: Who cares? It's a detail. I'll speak to him again when it matters. Carney added that, in his view, there is no burning issue to raise with his US counterpart.

The prime minister has faced criticism for his apparent lack of urgency, which raises the question about whether Canada is shifting its approach to trade talks with the US.

'Great deal of posturing'

Still, Carney is considering travelling to Washington next week for the Fifa World Cup draw. Canada is a host country of the international tournament next year, along with Mexico and the US.

Sources have told Canadian media that Carney and Trump could take the opportunity to meet, though nothing firm has been announced. This is one of those negotiations where there's a great deal of posturing on both sides, said Chris Sands, director of the Center for Canadian Studies at Johns Hopkins University.

Talks between the two countries stalled last month when Trump took offence at an anti-tariff advertisement featuring former US President Ronald Reagan, which was commissioned by the province of Ontario and aired in the US.

Despite the pause, Canadian representatives are still advocating on Canada's behalf with US lawmakers on Capitol Hill. However, trade talks have not formally progressed beyond that.

Tariff relief measures

In the meantime, the Carney government has signalled that it will be offering financial relief to sectors impacted by US tariffs as they weather the trade storm. The focus has instead been on his pledge to double Canada's non-US exports in the next decade.

Still, Carney is facing pressure from others to reach a resolution quickly, particularly as US tariffs on heavy machinery have hit Canadian sectors hard.

With both the US midterm elections and a review of a long-standing free trade agreement on the horizon for 2026, some hope that a resolution might be on the way.