Canadian and American trade negotiators began drafting a potential agreement before U.S. President Donald Trump abruptly halted trade discussions last week, according to Canada’s ambassador in Washington. Ambassador Kirsten Hillman informed the Senate foreign affairs committee that they were outlining the initial steps for a trade deal between Canada and the United States. The negotiations were progressing with both sides exchanging and documenting their views.
Trump abruptly ended the talks following an advertisement by the Ontario government that featured former U.S. president Ronald Reagan’s words to convey an anti-tariff message to American audiences. Hillman clarified during the committee hearing that while there had been advancements since Prime Minister Mark Carney’s recent visit to Washington, some unresolved issues remained. She emphasized that although they were not on the brink of an agreement, more progress had been made in recent weeks than in a long time.
Earlier on the same day, Carney and Trump interacted for the first time since the trade talks were called off. Despite acknowledging each other during a dinner toast before the Asia-Pacific Economic Cooperation Summit (APEC), they had limited engagement. Ontario Premier Doug Ford announced the withdrawal of the contentious advertisement that had triggered Trump’s decision, although it had already aired over the weekend, including during the World Series on American networks.
Initially aiming for a comprehensive trade and security pact with tariff relief, Ottawa’s expectations had shifted recently towards addressing specific sectoral tariffs. Reports suggested a potential deal on aluminum and steel could be achieved as soon as the APEC summit, but Carney downplayed these claims, stating that discussions with the U.S. were ongoing and cautioning against exaggerating the progress.
Hillman highlighted that recent talks had primarily focused on steel and aluminum but clarified that other sectors were not being disregarded. The U.S. proposed prioritizing certain issues while keeping all sectors in consideration, suggesting a sequenced approach to the negotiations rather than an exclusive focus on particular industries.
