Canadian and American trade negotiators had been in the process of drafting a potential agreement before U.S. President Donald Trump suddenly terminated trade discussions last week, according to Canada’s ambassador in Washington. Ambassador Kirsten Hillman informed the Senate foreign affairs committee on Wednesday that they were working towards outlining the initial steps of a trade deal between Canada and the United States.
The negotiations were progressing, with both parties exchanging perspectives and documenting their ideas. However, Trump brought the talks to an abrupt halt through a late-night social media post last Thursday in response to an Ontario government advertisement featuring former U.S. president Ronald Reagan’s words criticizing tariffs.
During the committee hearing, Hillman was questioned about the direction of the talks before their unexpected suspension. While she acknowledged advancements following Prime Minister Mark Carney’s recent visit to Washington, she noted that certain issues still needed resolution. Hillman clarified that although they were not on the brink of finalizing an agreement, they had made significant progress in the preceding weeks.
Earlier on the same day, Carney and Trump met in person for the first time after the latter called off the negotiations. Although they exchanged acknowledgments during a pre-Asia-Pacific Economic Cooperation Summit (APEC) dinner, their interaction seemed limited.
Following the controversy over the advertisement, Ontario Premier Doug Ford announced the ad’s withdrawal, which had caused tension between the two countries. Initially aiming for a comprehensive trade and security pact, Ottawa had shifted its focus to addressing specific sectoral tariffs in recent weeks.
Reports suggested a potential deal on aluminum and steel could be reached around the time of the APEC summit, although Carney downplayed these speculations, emphasizing ongoing discussions with the U.S. Hillman clarified that recent talks had centered on steel and aluminum but stressed that other industries were not disregarded. The U.S. proposed a sequential approach, seeking to address select issues first while keeping the door open for discussions on other sectors in due course.
