How Mark Carney Plans to End the Trade War with the US

Canadian Prime Minister Mark Carney believes that American tariffs on aluminum actually damage the U.S. economy itself. According to him, resolving the dispute in this sector could become the "key" to a much larger trade agreement between the two countries.

During a visit to Rio Tinto Group's aluminum plant in Quebec, Carney emphasized that since President Trump imposed a 50% tariff on imported metals in June 2025, aluminum prices in the U.S. have risen catastrophically. Statistics show that in just one year, the price index for aluminum producers increased by 52%.

According to the Prime Minister, the price increase is not solely due to international market trends. "The bulk of the price increase is directly the result of the tariff that American companies have to pay," Carney stated.

The situation is further complicated by the fact that the United States cannot meet domestic demand for primary aluminum with its own resources and is critically dependent on imports. Last year, nearly half of American imports—44%—came directly from Canada.

Ottawa's goal is to reach an agreement not only on aluminum, but also on steel, automotive manufacturing, and timber sectors. Carney made it clear that Canada does not intend to settle for a narrow, one-off deal that would leave other strategic industries behind. However, American officials expect reciprocal steps from Canada—specifically the elimination of retaliatory tariffs on automobiles, easing controls on dairy trade, and removing barriers imposed by provincial agencies on the sale of American alcoholic beverages.

If the parties fail to find common ground, the trade confrontation will escalate further. In such a case, new American sanctions would also affect such sensitive Canadian export products as dairy, beer, plywood, and even hockey equipment.

Source: Investing.com