“We are in a trade war and it’s normal that at the same time that the trade war is taking place, there are also diplomatic negotiations, and that therefore, Prime Minister Carney and President Trump talk to each other,” she told reporters.
The Globe and Mail newspaper earlier quoted the U.S. envoy to Canada as saying the two leaders were secretly holding direct talks to work out a framework for a trade and security deal.
Trump this week doubled the tariffs on imports of steel and aluminum to 50% from 25%. The move has the potential to hurt Canada, which is the largest seller of the metals to the U.S.
Carney said on Wednesday that the countries were in intense negotiations over the tariffs and that Canada was “preparing reprisals if those negotiations do not succeed”.
Pete Hoekstra, the U.S. ambassador to Canada, told the Globe the two sides were “laying out the perimeters” of a deal that could involve boosting U.S. content in autos, improving U.S. access to Canadian critical minerals and ensuring Canada played a much bigger role in the Arctic.
