President Donald Trump says he is open to extending the free trade agreement with Mexico and Canada through a negotiation or seeking "different deals" as he met with Canadian Prime Minister Mark Carney at the White House. Carney made his second visit to the Oval Office ahead of next year's review of the United States-Mexico-Canada Agreement and as one of the world's most durable and amicable alliances has been fractured by Trump's trade war and annexation threats. Trump's tariffs and comments about annexation have strained relations with Canada. Carney hopes to address sector-specific tariffs, as more than three-quarters of Canada's exports go to the U.S.
Canada is dropping retaliatory tariffs to match U.S. tariff exemptions for goods covered under the United States-Mexico-Canada trade pact. Prime Minister Mark Carney said Canada will include the carve-out that the U.S. has on Canadian goods under the 2020 free trade deal that shields the vast majority of goods from the punishing duties. The move is designed to reset trade talks between the two countries. The USMCA is up for review in 2026, and Carney called the trade pact a unique advantage for Canada at a time when it is clear that the U.S. is charging for access to its market.
By ZEKE MILLER, JOSH BOAK and ROB GILLIES Associated Press
Updated
President Donald Trump says 25% tariffs on imports from Mexico and Canada will start Tuesday, sparking renewed fears of a North American trade war. He announced the coming tariffs at the White House on Monday. He says the tariffs are to force the two U.S. neighbors to step up their fight against fentanyl trafficking into the U.S. Trump provided a one-month delay in February as both countries promised concessions. But Trump said Monday that there was "no room left for Mexico or for Canada" to avoid the steep new tariffs. U.S. stock markets moved sharply lower after Trump's comments. Trump said he would also add on another 10% tariff on goods from China, on top of the initial 10% he put in place last month.
