Canada’s top ministers said the country’s change of leadership may provide a chance to “reset” its now troubled relationship with the U.S., its biggest trading partner.
Mark Carney, who will replace Prime Minister Justin Trudeau on Friday, is expected to talk to President Donald Trump in the coming days, said Canada’s Industry Minister Francois-Philippe Champagne on Thursday.
“They may take that opportunity to engage with the new prime minister in a different way, with respect,” said Champagne. Standing alongside Finance Minister Dominic LeBlanc and Canada’s ambassador to the U.S. Kirsten Hillman at a press conference in Washington, Champagne said the moment could be a chance for “kind of a reset.”
Trump and the incoming prime minister have spoken in the past, and Carney, a two-time former central bank governor, brings “an outstanding level of experience and resume, understands the world, understands markets, understands the economy,” which should help talks, Champagne said.
The press conference followed a meeting arranged between U.S. Commerce Secretary Howard Lutnick and Ontario Premier Doug Ford, after a tariff dispute flared up at the start of the week. The leader of Canada’s most populous province imposed 25% export taxes on its electricity exports to US states, prompting Trump to threaten doubling metals tariffs, before the two sides agreed to hold off on the duties and meet instead.
During the meeting with the Canadian officials, U.S. Trade Representative Jamieson Greer and Lutnick highlighted the administration’s “commitment to pursuing fair trade and Canada’s potential role in those efforts,” according to a White House readout.
In a conversation lasting more than one hour on Thursday, the two sides discussed issues including how Canada’s aluminum — subject to a 25% U.S. tariff since Wednesday — contributes to the US defense industry, Champagne said. However, Canada would not discuss changes to its dairy trade controls, though they are a Trump grievance, LeBlanc said.
While the Canadian officials struck an upbeat tone, it remains unclear whether Trump will retaliate against Canada’s countermeasures on his steel and aluminum tariffs, as he has threatened to do against the EU, which took a similar response.
LeBlanc declined to rule out more aggressive retaliation, such as export controls on key products. “We’ve said all these options remain on the table,” he said. “Our hope is we don’t get to the point that we’re examining these sort of extraordinary steps.”
Ford, speaking separately after the meeting, said it was positive. A spokeswoman later said Ontario would continue its pause on an export tariff on electricity to a handful of northern US States, a retaliatory tactic that Trump objected to earlier this week.
Ford said the two sides would meet again next week.
Champagne hinted that he and LeBlanc would remain in the new cabinet to be appointed by Carney on Friday, though they all face a national election as soon as the coming weeks.
Asked if Canadians should be less combative in the trade dispute, Champagne said, “there’s no alternative than standing up for Canadians.”
“If there’s one thing that President Trump respects, it’s strength, it’s frankness,” he said.
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