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Trump, Donald

G7 Summit: Carney and Trump to Hold One-on-One Meeting Amid Ongoing Trade War

Strategic Insights

— 2 min read

As the Group of Seven Leaders' Summit convenes in Kananaskis, Alta., Prime Minister Mark Carney will hold a one-on-one meeting with U.S. President Donald Trump, offering a chance for the two leaders to make progress on resolving a three-month trade war. The meeting comes as Canada and the U.S. engage in closely held talks on a new economic and security deal, with both sides seeking common ground to end the damaging tariffs. The talks have been ongoing, with the U.S. imposing levies on Canadian steel and aluminum, which doubled to 50 per cent earlier this month, and a 25-per-cent tariff on Canadian-made vehicles.

Key Takeaways:

  • The one-on-one meeting between Prime Minister Mark Carney and U.S. President Donald Trump is set to take place on Monday, providing an opportunity for the two leaders to make progress on resolving the ongoing trade war.
  • Canada and the U.S. are engaging in closely held talks on a new economic and security deal, with both sides seeking common ground to end the damaging tariffs.
  • The current U.S. levies include tariffs on Canadian steel and aluminum, which doubled to 50 per cent earlier this month, and a 25-per-cent tariff on Canadian-made vehicles.
  • The talks on a new economic and security agreement between Canada and the U.S. could amount to a first phase, with the second phase being the renegotiation of the USMCA already scheduled for 2026.
  • Topics Canada and the U.S. are discussing include working together to counter China's unfair trade practices, and further border security arrangements to stop the illegal distribution of the opioid fentanyl.
  • Canada is facing hard budget choices as it hosts the G7 summit and prepares for a looming NATO meeting, with Western allies expected to commit to further defence spending hikes in the face of rising threats from Russia and other rivals.

Statistics:

  • The U.S. has imposed a 50-per-cent tariff on Canadian steel and aluminum, which doubled earlier this month.
  • The U.S. has also imposed a 25-per-cent tariff on Canadian-made vehicles.
  • Canada has imposed retaliatory tariffs on imports from the U.S.
  • The talks on a new economic and security agreement between Canada and the U.S. could amount to a first phase, with the second phase being the renegotiation of the USMCA in 2026.
  • Canada's current defence spending is expected to hit 2 per cent of gross domestic product this fiscal year.
  • Hiking Canada's defence expenditure to 3.5 per cent of GDP would require an additional $45-billion to $50-billion each year on its military.

Sources:

  • The Globe and Mail, reported last week
  • Reuters, report from

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