Trump dismisses USMCA update as Carney says Canada enters talks strongly

Trump said he does not care about revising the North American trade pact, while Prime Minister Mark Carney said Canada is negotiating from strength as officials meet in Washington amid new U.S. tariffs.

Summary

President Donald Trump said he does not care about updating the U.S.-Mexico-Canada Agreement, signaling limited U.S. urgency on the North American trade pact even as Canada sends senior officials to Washington for further talks. Prime Minister Mark Carney said Canada is entering the negotiations from a position of strength, with more than 80% of Canada-U.S. trade still tariff-free, as Ottawa seeks a more stable trading relationship before additional U.S. tariffs are due to take effect in August. Trump said he would rather be independent and argued that Mexico and Canada need the United States more than the United States needs them. His July 1 decision not to extend the six-year-old USMCA started a decade-long wind-down process unless the three countries agree on revisions. Trade chief Jamieson Greer has continued talks with Mexico on possible changes, but major differences remain over tighter regional automotive content rules. Canada has not been part of the formal USMCA negotiations so far, though high-level contacts with Greer have continued. Dominic LeBlanc, the Canadian minister responsible for U.S. trade, traveled with Canada's chief negotiator to the U.S., Janice Charette, for meetings in Washington after the administration announced additional 50% tariffs on about $20 billion of Canadian imports. The U.S. said the tariffs, imposed under Section 338 of the Tariff Act of 1930, respond to Canadian retaliation, provincial moves to remove U.S. liquor from shelves and limited dairy market access concessions. Carney said Canada is pursuing a more permanent, or in his words more stable, arrangement with Washington that reflects the new U.S. approach to trade. He defended concessions including the Gordie Howe Bridge revenue split, digital services tax changes and streaming funding rules, and said Ottawa would accept only an outcome that works for Canadians while keeping other economic support measures and responses available if talks fail.

Terms & Concepts
  • USMCA: North American trade pact linking the U.S., Mexico and Canada.
  • USTR: U.S. Trade Representative, the U.S. government's trade negotiating office.
  • Section 338 of the Tariff Act of 1930: Rarely used U.S. legal authority cited for imposing tariffs on Canadian imports.