Trump, Carney faceoff in Oval Office leaves gaping differences on tariffs, 51st state

Asked by a reporter if there was anything Carney could tell him to lift his tariffs of as much as 25% on Canada, Trump bluntly said: "No."

The U.S. president added for emphasis, "Just the way it is."

Carney acknowledged that no bit of rhetoric on tariffs would be enough to sway Trump, saying that "this is a bigger discussion."

"There are much bigger forces involved," the Canadian leader continued. "And this will take some time and some discussions. And that's why we're here, to have those discussions."

The meeting between the two leaders showcased the full spectrum of Trump's unique mix of aggression, hospitality and stubbornness.

Shortly before Carney's arrival, Trump insulted Canada by posting on social media that the United States didn't need "ANYTHING" from its northern neighbor, only to then turn on the charm and praise Carney's election win in person before showing his obstinance on matters of policy substance.

Carney won the job of prime minister by promising to confront the increased aggression shown by Trump, even as he has preserved the calm demeanor of an economist who has led the central banks of both Canada and the United Kingdom.

At times, Carney struggled to interject his views and raised his hand to talk as Trump held forth at length and veered between topics, touching on California Democratic Gov. Gavin Newsom, Carney's predecessor, Justin Trudeau, and teasing a "great" upcoming announcement that's "not necessarily on trade."

Trump offended Canada's sense of pride and friendship by saying he wants to make Canada the 51st U.S. state and levying steep tariffs against an essential partner in the manufacturing of autos and the supply of oil, electricity and other goods. The outrage provoked by Trump enabled Carney's Liberal Party to score a stunning comeback victory last month as the trade war and attacks on Canadian sovereignty have outraged voters.

Trump said the two would not discuss making Canada part of the U.S., even as he insisted the idea would lead to lower taxes for Canadians.

"It's not for sale," Carney said. "It won't be for sale. Ever. But the opportunity is in the partnership and what we can build together."

Trump persisted by saying that the United States did not want to buy autos from Canada, even if the vehicles were also assembled in America. The U.S. leader insisted that the $63 billion trade deficit in goods — which he inflated to $200 billion — was a subsidy that needed to come an end.

The meeting never devolved into the outburst that the public saw in Trump's meeting with Ukrainian President Volodymyr Zelenskyy, who was berated by the U.S. president and his team for not being sufficiently deferential. Nor did it have the ease of Trump's sit down with the United Kingdom's Prime Minister Keir Starmer, who invited Trump for a visit provided by King Charles III.

The stakes of the meeting were high and the messages beforehand mixed. Trump told reporters on Monday that he wasn't quite sure why Carney was visiting.

"I'm not sure what he wants to see me about," Trump said. "But I guess he wants to make a deal."

U.S. Commerce Secretary Howard Lutnick further stoked doubts about their interest in repairing the relationship with Canada in a Monday interview on Fox Business Network's "Kudlow" show.

Asked if the U.S. could make a deal with Canada, Lutnick called the country a "socialist regime" that has been "basically feeding off America." Lutnick said Tuesday's meeting would be "fascinating."

Carney, at a Friday news conference ahead of his trip, said the talks would focus on immediate trade pressures and the broader economic and national security relationships. He said his "government would fight to get the best deal for Canada" and "take all the time necessary" to do so, even as Canada pursues a parallel set of talks to deepen relations with other allies and lessen its commitments with the U.S.

Trump has maintained that the U.S. doesn't need anything from Canada. He is actively going after a Canadian auto sector built largely by U.S. companies, saying, "They're stopping work in Mexico, and they're stopping work in Canada, and they're all moving here." He also said the U.S. doesn't need Canada's energy — though nearly one-fourth of the oil that the U.S. consumes daily comes from the province of Alberta.

The president has also disparaged Canada's military commitments despite a partnership that ranges from the beaches of Normandy in World War II to remote stretches of Afghanistan. He said on Tuesday with Carney that the U.S. would continue to provide national security support to Canada.

Daniel Béland, a political science professor at McGill University, said Carney needed the quickly scheduled meeting with Trump to address the trade war started by the U.S. Trump has imposed 25% tariffs on steel and aluminum and tariffs on other products outside the United States-Mexico-Canada Agreement, in some cases ostensibly to address relatively low volumes of fentanyl intercepted at the border between the two countries.

"Carney wants to show that he's doing everything he can, including taking political risks to protect Canadian jobs in areas such as the auto industry," Béland said. "If he had postponed his first meeting with President Trump for months and months, opposition parties and commentators could have accused him of being overly shy and doing a disservice to Canada because of that."

Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports are from Canada.

Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security. Canada is one of the most trade-dependent countries in the world, and 77% of Canada's exports go to the U.S.