Carney says Trump’s tariff threats are negotiation tactics ahead of USMCA review

Canadian Prime Minister Mark Carney on Monday framed some of U.S. President Donald Trump’s recent threats to impose steep tariffs on Canadian imports as strategic positioning ahead of the upcoming review of the United States–Mexico–Canada Agreement (USMCA), rather than immediate policy shifts.

Carney said he expects a “robust review” of the USMCA this year and described Trump as a formidable negotiator, suggesting that critical comments from the U.S. president should be understood in the context of those talks.

Trump sparked controversy over the weekend by threatening a 100 per cent tariff on goods imported from Canada if Ottawa were to pursue a trade deal with China, although Carney has repeatedly emphasised that Canada’s recent arrangements with Beijing are limited in scope and not a comprehensive free-trade agreement.

Canada’s government has clarified that its engagement with China involves tariff adjustments on select products rather than opening full market access, and has reiterated that it remains bound by its commitments under the USMCA not to negotiate free-trade agreements with non-market economies without notifying its partners.

The tariff threats have unfolded amid broader tensions between Ottawa and Washington, including disputes over trade policy and geopolitical issues such as Trump’s controversial suggestion about acquiring Greenland and comments perceived as challenging Canada’s sovereignty.

Carney’s remarks follow a period in which he has positioned himself and Canada as advocates for stronger multilateral cooperation and economic diversification, a theme he underscored at the World Economic Forum in Davos.

While Trump’s rhetoric has alarmed some analysts and political figures, Ottawa has sought to reassure markets and trading partners that the looming USMCA review is intended to uphold and refine the existing pact, not dismantle it, even as diplomatic friction persists.

With PTI inputs