US, Canada to tackle tariff standoff amid China steel concerns

Canadian Prime Minister Mark Carney is expected to speak with US President Donald Trump in the coming days as both countries seek to ease heightened trade tensions stemming from sweeping tariffs on steel, aluminium, and other goods.

The anticipated conversation comes after Canadian Minister for US-Canada Trade, Dominic LeBlanc, held negotiations in Washington last week, leaving without a deal but with optimism that progress remains possible, Caliber.Az reports per US media.

The US imposed a 35% tariff on Canadian goods during the talks, alongside existing 50% tariffs on Canadian steel and aluminium — measures Ottawa says are hurting both economies.

LeBlanc stressed that the Canadian government is “prepared to stick around and do the work needed” to reach a settlement, highlighting the deeply integrated nature of the two countries’ industries. “We don’t sell things to each other as much as we build things together,” he said, pointing to shared supply chains in sectors such as automotive manufacturing.

The minister noted that Canadian aluminium producers are major suppliers to US manufacturers, including automakers such as General Motors, Ford, and Stellantis, which have warned the tariffs are squeezing profits and raising costs. Half of the cars assembled in Canada and exported south are made from US parts, while Canada remains the largest foreign buyer of US-built vehicles.

LeBlanc said both governments share a national security interest in maintaining strong domestic steel, aluminium, and automotive sectors. He argued that punitive measures on Canadian exports contradict that goal, raising consumer prices and disrupting industries on both sides of the border.

Carney, who took office earlier this year, has sought to reset relations with Washington after Canada’s retaliatory tariffs against US measures under former Prime Minister Justin Trudeau. LeBlanc described the prime minister’s rapport with Trump as “business-like” and “respectful,” adding that Ottawa is committed to aligning with US efforts to block Chinese steel dumping through strict “melt and pour” tracing requirements.

Ottawa has also passed its own version of Trump’s flagship “One Big, Beautiful Bill” — the One Canadian Economy Act — which LeBlanc said could unlock $500 billion in investment in infrastructure, mining, and energy projects, creating opportunities for American companies.

While no date has been confirmed, LeBlanc said he “would expect” Carney and Trump to speak within days, signalling that both sides see potential for a deal to reduce tariffs and restore stability to the world’s largest bilateral trading relationship.

By Aghakazim Guliyev