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Canada ready for a trade deal with US that benefits both, Carney says

Al Jazeera · 2026-09-03

AI SUMMARY

• What happened: Canadian Prime Minister Mark Carney announced his government's readiness to negotiate a mutually beneficial trade deal with the United States following the collapse of recent trade discussions, emphasizing the need for stability in any agreement. • Why it matters: The breakdown in negotiations has led to significant tariffs imposed by both countries, affecting Canadian goods and potentially escalating trade tensions, which could impact the economies of both nations. • What to watch next: Monitor developments in US-Canada trade negotiations, particularly any shifts in the US's approach to contentious issues, and the impact of upcoming retaliatory tariffs set to take effect next week.

**Canada Ready for Trade Deal with the US, Says Prime Minister Carney**

**Thunder Bay, Ontario** – Canadian Prime Minister Mark Carney expressed readiness to negotiate a mutually beneficial trade deal with the United States, following the collapse of recent trade discussions. Speaking to reporters on September 3, 2026, Carney emphasized the importance of a stable and credible agreement that would serve the interests of both Canadian and American families, businesses, and consumers.

"The deal that’s possible, that’s in the interests of Canadian workers, families and businesses, is also the deal that is in the interests of American families, American businesses, American consumers," Carney stated. "We’re ready to sit down and strike that deal when the Americans are ready."

The Prime Minister's remarks come in the wake of a breakdown in negotiations last month, which left both countries at an impasse. During these negotiations, the United States imposed a 50 percent tariff on $20 billion worth of Canadian goods. In response, Canada announced retaliatory tariffs on a similar amount, set to take effect next week. Additionally, the US has threatened to impose 50 percent tariffs on all Canadian cars and car parts starting January 1, 2027.

Carney addressed comments made by US Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, who suggested that Canada had walked away from the negotiations due to domestic political considerations. "I don’t think, with all respect, appointed, unelected cabinet members in the United States are experts on Canadian politics," Carney remarked, indicating that the breakdown was due to more complex issues than suggested.

The Prime Minister noted a potential shift in the US's approach to trade discussions, stating that previously contentious issues were no longer being prioritized by American negotiators. "There were a few issues that the United States was arguing right up to the last hour," he explained, characterizing the US stance as an "our way or the highway" mentality. "Now, they’re not," he added, suggesting a willingness from the US to reconsider certain elements of the negotiations.

Carney's comments were made shortly before US President Donald Trump took to social media to respond, suggesting that Carney's remarks were politically motivated and warning that positioning Trump as an adversary could have dire consequences for the Canadian economy.

Historically, the US has been Canada's largest trading partner, with nearly 80 percent of Canadian exports directed to the US. However, recent data from Statistics Canada indicates a decline in this dependency. In July 2026, the US accounted for 66.35 percent of Canada’s total exports, down from 69.39 percent in June and 72.64 percent a year prior. Conversely, Canada's import reliance on the US has only slightly decreased, now at 59 percent compared to 62 percent in 2024.

In a related announcement, Carney revealed plans to invest 4.7 billion Canadian dollars (approximately $3.4 billion) to build and maintain over 300 Via Rail passenger rail cars domestically, utilizing facilities in Quebec and Thunder Bay. This initiative marks a strategic shift away from importing rail cars from the US, reflecting Canada's efforts to bolster its domestic manufacturing capabilities.

As both nations navigate the complexities of trade relations, Carney's readiness to engage in negotiations signals a potential opening for renewed discussions aimed at achieving a trade agreement that supports economic stability and growth for both Canada and the United States.

Source: Al Jazeera
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