Carney to brief premiers on U.S. trade discussions as Trump deadline bears down

OTTAWA — Prime Minister Mark Carney will be offering his update on trade talks with the White House when he sits down with the premiers Tuesday, while discussing their concerns as an Aug. 1 deadline for more tariffs rapidly approaches.

Carney is joining the provincial and territorial premiers during their summer gathering in Muskoka, Ont. Carney is expected to offer an opening statement, but most of the meeting on Tuesday is set to happen behind closed doors.

On Monday, Quebec Premier François Legault said he will tell Carney he wants protection in negotiations for supply management for the dairy, egg and poultry sectors, as well as the exemption for Quebec’s cultural industries from free-trade requirements.

British Columbia Premier David Eby has said he hoped Carney would kick off trade discussions by trying resolve the softwood lumber issue , which has been a trade irritant between Canada and the U.S. for decades.

Carney recently said he thought it unlikely that there wouldn’t be at least some tariffs in any deal struck before Aug. 1, though most of Canada’s trade with the U.S. is protected by the Canada-U.S.-Mexico Agreement (CUSMA( that exempts most of the goods and services crossing the border.

So far, Trump has imposed tariffs of 50 per cent on steel and aluminum; 25 per cent tariffs on goods, automobiles and automobile parts not covered by the CUSMA trade deal; and 10 per cent tariffs on energy. He is now threatening to impose a 35 per cent blanket tariff on Aug. 1

Canada has so far retaliated with counter tariffs on billions of dollars worth of American exports, but Carney is holding off on further measures pending the result of ongoing negotiations by the end of the month.

Saskatchewan Premier Scott Moe said he has “never been a big proponent of increasing countertariffs” and would rather try to find a way to get the White House to renew CUSMA, which is due to begin its mandated review in 2026. Moe also signalled he is prepared to live with some level of tariffs for the time being.

“We won’t get to zero on each and every topic. The goal is to get as close as zero on as many items that we possibly can. I know that’s the prime minister’s goal as well,” he said.

Whatever the outcome of the deal is — tariffs or no tariffs — Legault said he will ask Carney to make sure there is a specific time frame to add more certainty for businesses.

Speaking in Hamilton, Ont. last week, Carney said his team was “in the midst of long now and tough negotiations with the United States, and… working for the best deal for Canada.”

“Part of the reason why we don’t have a deal is that deal is not yet on the table,” he said.

National Post calevesque@postmedia.com

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