By ROB GILLIES
TORONTO (AP) — Canadian Prime Minister Mark Carney said Monday some of U.S. President Donald Trump’s threats should be viewed as prepositioning ahead of negotiations to renew the free trade pact between the two large trading partners.
Carney noted they are entering a review of the United States–Mexico–Canada Agreement this year and said he expects a “robust review.”
“The president is a strong negotiator, and some of these comments and positioning should be viewed in the broader context of that,” Carney said.
Trump threatened this past weekend to impose a 100% tariff on goods imported from Canada if America’s northern neighbor went ahead with a trade deal with Beijing, something Carney said Canada has no interest in.
Carney has said his recent agreement with China merely cuts tariffs on a few sectors that were recently hit with tariffs.
In 2024, Canada mirrored the United States by putting a 100% tariff on electric vehicles from Beijing and a 25% tariff on steel and aluminum. China had responded by imposing 100% import taxes on Canadian canola oil and meal and 25% on pork and seafood.
Breaking with the United States this month during a visit to Beijing, Carney cut its 100% tariff on Chinese electric cars in return for lower tariffs on those Canadian products.
“Last week’s new strategic partnership with China will make available tens of thousands affordable electric vehicles in Canada,” Carney said Monday.
Carney has said there would be an initial annual cap of 49,000 vehicles on Chinese EV exports coming into Canada at a tariff rate of 6.1%, growing to about 70,000 over five years.
He also has said the initial cap on Chinese EV imports was about 3% of the 1.8 million vehicles sold in Canada annually and that, in exchange, China is expected to begin investing in the Canadian auto industry within three years.
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