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Canada has not settled on a trade deal with the US, unlike Washington’s other allies, such as the European Union. The United States is Canada’s main economic partner, with 75 per cent of Ottawa’s exports being sold across its southern border
Canadian Prime Minister Mark Carney is set to meet US President Donald Trump at the White House on Tuesday, with a focus on trade talks as American tariffs are negatively impacting Canada’s economy.
In Carney’s “working visit” to the White House – his second trip since winning office in April – the 60-year-old former banker seeks to restore bilateral relations and discuss “shared priorities in a new economic and security relationship between Canada and the US,” Ottawa said in a statement.
White House spokeswoman Karoline Leavitt confirmed the visit, saying Monday: “I’m sure trade will be a topic of discussion tomorrow, and all of the other issues that are facing both Canada and the United States.”
Canada has not settled on a trade deal with the US, unlike Washington’s other allies, such as the European Union. The United States is Canada’s main economic partner, with 75 per cent of Ottawa’s exports being sold across its southern border. Canada saw its GDP decline by 1.5 per cent in the second quarter, adding to the economic pressure.
Trump tariffs on Canada
In August, Trump’s 35 per cent tariffs on Canadian exports took effect, and now the president has announced 25 per cent tariffs on heavy trucks starting November 1.
Canada is the second-largest US trading partner after Mexico, and the largest buyer of US exports. It bought $349.4 billion of US goods last year and exported $412.7 billion to the US, according to US Census Bureau data.
Canada’s national statistical agency has said that trade with its neighbour to the south withered in May in the wake of a punishing tariff war launched by Trump. However, Canada made up part of the shortfall with increased shipments to other nations.
Canada and Mexico team up
Last month, Mexican President Claudia Sheinbaum hosted Carney for trade talks, where the duo discussed ways to protect their economies from Trump’s trade war.
“Both of us trade a lot with the United States but there is also a lot of Mexico-Canada trade,” Mexico’s leftist leader said.
The pair also discussed Canadian investment in sectors such as Mexican mining, gas and rail, she added.
With inputs from agencies
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