Canada delays negotiations on new trade agreement with US: Reason named

The current head of government positions himself as a leader capable of withstanding external pressure and ensuring stability within the country.

In his view, the planned snap federal elections on April 28 should be held first. He initiated them following Justin Trudeau's resignation in March, aiming to strengthen the government’s mandate amid pressure from the US and new economic challenges facing the country.

If he wins the election, Carney promises to focus on reducing internal trade barriers, stimulating housing construction, and developing resource projects to strengthen the country’s economy. In his view, these reforms will help Canada in negotiations with the Trump administration over a new trade agreement.

“We don’t have to do a deal in the short term. My government will do the right deal,” Carney said on Thursday, April 24.

Despite tensions between the two countries, the Canadian prime minister plans to meet with Trump just a few days after the elections.

“Look, the president has certain things in his mind that he reverts back to all the time, but treated me as the prime minister, not as something else,” Carney emphasized.

He confirmed that during their conversation in March, Trump raised the idea of potentially including Canada as part of the US, but stressed that any negotiations would be conducted between two sovereign nations.

Constructive dialogue will resume

Former Canadian trade negotiator Steve Verheul is optimistic about the prospects for cooperation between the two countries. He does not rule out the possibility that Ottawa and Washington could reach an agreement within the framework of the US-Mexico-Canada Agreement (USMCA), which is set to be updated in 2026.

According to Verheul, there is potential for maintaining free trade between the two countries. In his view, Washington will ultimately recognize that an isolationist approach is unbeneficial and will begin seeking partners again - North America being the safest environment for such cooperation.

“The US market will be back and I don’t think we should expect business to start shifting all of their efforts toward Europe or Asia or the domestic market because they’re likely going to shift back eventually when we get a sense of reality in the White House,” the former negotiator said.

Verheul believes Canada has a real chance to secure a preferential deal with the US, especially considering that Trump has already suspended most of the so-called mirror tariffs.

At the same time, the expert reminded that the US president has not ruled out the possibility of introducing new tariffs, particularly on cars from Canada. On Wednesday, Trump did not rule out the imposition of new tariffs and added that the US does not wish to import Canadian-made cars.

Verheul believes the toughest negotiations between Canada and the US will involve sectors such as steel, aluminum, automotive, pharmaceuticals, lumber, copper, and critical minerals.

Meanwhile, one of Canada’s most important bargaining tools will remain the energy sector.

“Canada is by far the largest external supplier of oil to the US; some refineries depend on buying cheaper Canadian heavy crude and have few alternatives to it. We need them, they need us, and I think we’ll get back there,” Verheul concluded.

US tariffs and the Canada factor

In early February, US President Donald Trump imposed a 25% tariff on imports of goods from Canada and Mexico.

The implementation of the tariffs was initially postponed to early March, and later to early April.

Additionally, Trump raised tariffs on imports of steel and aluminum from Canada to 50%. The US also introduced a 10% tariff on Canadian energy products.

In response, Ottawa imposed a 25% tariff on imports of cars from the US. The tariffs were applied to cars that do not meet the requirements of the Canada-US-Mexico Agreement (CUSMA).

Carney stated that Canada no longer considers the US a reliable partner and is prepared to become a new global leader.

At the same time, Trump has repeatedly expressed a desire to annex Canada and turn the country into the 51st state of the US.