Carney says sectoral tariff talks likely folding into CUSMA review as U.S. makes new trade demands

Prime Minister Mark Carney says if U.S. President Donald Trump wanted to sit down as soon as this weekend to “hammer out” sectoral deals to ease tariffs hitting certain industries, Canada is “ready,” while conceding the chances of short-term relief for steel, aluminum and lumber sectors is unlikely.

Carney said that, given trade talks remain terminated, the federal government anticipates those negotiations will roll in to the broader Canada-U.S.-Mexico Agreement (CUSMA) review process kicking off in 2026.

A statement Thursday from the Prime Minister’s Office said Dominic LeBlanc, the minister responsible for Canada-U.S. trade, will meet with U.S. counterparts in mid-January to launch formal discussions.

Trump called off negotiations after the Ontario government ran an anti-tariff ad in the U.S. in the fall.

“We’re less likely, we’re unlikely, given the time horizons coming together, to have a sectoral agreement,” Carney told reporters on Thursday, speaking alongside Ontario Premier Doug Ford on Parliament Hill where the two leaders signed a new federal-provincial co-operation accord.

“Although, if the United States wants to come back on that in those areas, we’re always ready,” Carney said.

Pressed on whether this means sectoral deals are off the table, the prime minister said, while he remains “busy” building up the domestic economy in the meantime, agreements are still possible from Canada’s perspective.

“If the U.S. wanted to sit down this weekend, we could sit down this weekend and hammer out sectoral deals. I’m confident of that from our side,” Carney said. “But there is now a process the U.S. is doing consultations for what they call USMCA, we call CUSMA. They’ll finish those, and then that will roll into this review process.”

Worried about CUSMA concessions?

That CUMSA review is shaping up to be another round of tough talks, with U.S. officials signalling Canada will need to make concessions.

On Wednesday, U.S. Trade Representative (USTR) Jamieson Greer – speaking to Congress about the administration’s strategy for approaching the six-year joint review – said that while CUSMA has delivered benefits, Washington is not prepared to automatically extend it without addressing “specific” issues.

“(CUSMA) has been successful to a certain degree,” he said, citing the certainty for North American trade it has provided, according to a document shared after Greer’s closed-door meeting. Though he also said the deal’s gains do not outweigh what he described as “structural shortcomings.”

“USTR will keep the President’s options open, negotiating firmly to resolve the issues identified, but only recommending renewal if resolution can be achieved,” Greer’s prepared remarks state.

Asked about the Americans’ wish list of sorts on Thursday, the prime minister wouldn’t say whether he feels more or less discouraged about the upcoming talks based on what the U.S. intends to put on the table.

“We will always pursue an agreement that is in the interest of Canadian workers, Canadian families, and we’ll only sign an agreement that’s consistent with that,” Carney said. He also committed to working with any province or territory that may be affected by potential adjustments to the trilateral deal.

Stating that there are “many” examples of where working together makes all three countries’ economies stronger, “we need a structure that aligns the incentives across both sides of the border, particularly on the American side, that will provide consistency of that market access.”

USTR cites dairy, streaming, booze bans

Indicating there will be both bilateral and trilateral negotiations to try and iron out respective issues with Mexico and Canada, Greer said the U.S. will specifically be pushing this country to expand access to its supply managed dairy market.

While Canada allows a limited amount of U.S. dairy to enter tariff-free under CUSMA, Greer told U.S. lawmakers that Canadian policies “unfairly restrict market access” for American products.

Greer also cited Canada’s Online Streaming Act – which he said “discriminates against U.S. tech and media firms,” and the Online News Act, as irritants. Both Trudeau-era laws bring streaming and digital news platforms under Canadian cultural and broadcasting rules.

Another area irking the Americans, according to Greer, is Canadian provinces’ bans on U.S. alcohol products.

Weighing in on that aspect on Thursday, premier Ford said Ontario wineries and distillers are having “a record year” and should the two countries reach a deal that works for both countries, he’d be “more than happy” to resume stocking Kentucky bourbon.

“But until then, we’re going to hold off,” Ford said. “Full confidence in the prime minister and his negotiating with President Trump.”

Trump’s trade chief also flagged “discriminatory” procurement rules in Ontario, Quebec, and British Columbia, “complicated customs registration” for Canadian recipients of U.S. exports, and Alberta’s “unfair treatment of electrical power distribution providers in Montana.”

The prime minister called these issues “a subset… of a much bigger discussion,” and re-affirmed his government’s vow to protect Canada’s supply management system.

Later Thursday, Carney held a First Ministers meeting. With international trade, including with the U.S. but also other countries on the agenda, it was expected that Greer’s cross-Canada list of irritants would also be raised. A senior government source told CTV News after the conversation concluded that the focus was almost entirely on CUSMA and Canada’s broader trade agenda.

With files from CTV News’ Tammy Ibrahimpoor and Abigail Bimman