Carney tells ASEAN summit Canada respects trade rules, as Trump threatens new tariffs

CTV News’ U.S. political analyst Eric Ham speaks to CP24 about the trip and President Trump’s most recent calls to increase tariffs on Canada by 10 per cent.

KUALA LUMPUR — Prime Minister Mark Carney took a veiled shot at the Trump administration’s trade policy on Sunday, highlighting Canada’s reliability and steadiness without naming the United States or calling out the president directly.

“We value a rules-based system. We respect trade agreements and the rule of law. We value the free exchange of goods, capital and ideas,” Carney said at the Association of Southeast Asian Nations leaders summit in Malaysia.

Those comments seemed intended to draw a sharp contrast with U.S. President Donald Trump, who threatened late Saturday night to hike tariffs on Canada over an anti-tariff TV ad the Ontario government has been running in U.S. markets.

Later on Sunday, Carney told reporters the Canadian government is ready to keep working on the progress it had made toward a trade deal with the U.S.

“It is the sole responsibility of the government of Canada to have those discussions with the United States, and it’s the best way forward,” Carney said. He did not answer questions.

The latest twist in the trade dispute comes just as hopes had been raised that the two sides were very close to a deal on sectoral tariffs, especially after Carney’s latest visit to the White House earlier this month.

The $75-million ad campaign that appears to have angered the mercurial president features clips of former president Ronald Reagan talking about tariffs.

On Thursday, Trump abruptly cut off trade talks with Canada, citing the ad. Ontario Premier Doug Ford spoke with Carney before he left for Malaysia and announced a plan to pull the ads after the weekend.

Heading into the overseas visit, Carney had downplayed the idea that he and Trump were ready to sign some kind of a deal while in Asia but said he was looking forward to meeting the president.

Now, it’s unclear if a meeting will happen this week at all. The leaders are both set to attend the Asia Pacific Economic Cooperation forum in South Korea later in the week.

Trump’s pronouncement came as he was en route to Malaysia himself.

“Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD,” Trump said on X.

He said Canada would face an extra 10 per cent tariff on top of what was already in place. It was not immediately clear how or when that would be implemented.

Goldy Hyder, president and CEO of the Business Council of Canada, said Canadians need to reflect on the tactics at play in the trade war and find a way to get back to negotiating.

“We’ve got to pull our own act together here if we’re going to be able to have an opportunity to make progress, not only on the sectoral agreements, but frankly, we have to recognize there’s a long game here. And that long game here is a review and renewal of the (Canada-U.S.-Mexico Agreement on trade),” Hyder said.

He added he’s becoming concerned Canada is becoming too comfortable with that agreement, which is set to be renegotiated next year. The deal, known as CUSMA, covers the vast majority of Canada-U.S. trade and most of Trump’s tariffs exempt CUSMA-compliant goods.

Carney’s speech at the ASEAN summit came at around the same time as Trump was arriving at the convention centre in the capital Kuala Lumpur to take part in the signing of a peace deal between Thailand and Cambodia.

Canadian officials said Carney and Trump had not spoken since Thursday and the pair did not cross paths on Sunday. The president was scheduled to leave Monday morning for Japan.

Carney told ASEAN leaders on Sunday that the emergence of “transactional bilateral trade” and a new era of great power rivalry are challenging the global institutions that middle powers like Canada and Southeast Asian countries have relied upon.

He said those changes underscore the need for reliable partners — and said Canada is one such partner.

Carney highlighted his government’s plans to double non-U.S. exports in the next decade and to quadruple defence spending in the next four years, with much of that going toward cybersecurity and AI.

Carney also noted Canada’s recent trade agreement with Indonesia, the first with an ASEAN member, and pledged to move quickly on bilateral deals with other interested countries.

He said Canada is committed to putting “all the resources in” to finalizing a trade deal with ASEAN as a whole by next year.

After a meeting with the president of the Philippines, Ferdinand Marcos Jr., Carney’s office said the pair agreed to try and finalize a bilateral trade agreement in 2026.

Carney also met with the prime ministers of Laos and Vietnam on the sidelines of the summit before taking part in a fireside chat at the ASEAN business and investment summit.

The ASEAN leaders welcomed Timor-Leste as the bloc’s 11th member on Sunday as the summit officially opened.

Sarah Ritchie, The Canadian Press