Prime Minister Mark Carney recently stated that Canada has secured, "the best trade deal of any country in the world" with U.S. President Donald Trump. Carney made this claim during a press conference on Wednesday, highlighting ongoing discussions between Canadian officials and their U.S. counterparts. He noted, "We have a team, a very senior team, the clerk of the Privy Council is there in Washington as we speak, that is meeting with U.S. counterparts." Carney also mentioned a recent conversation with Trump, describing it as a "good" discussion.

Carney's assertion is based on the Canada-U.S.-Mexico Agreement (CUSMA), which allows Canada an effective average tariff rate of 5.2% on exports to the U.S. In contrast, other countries face an average tariff rate of 15% or higher. However, it is important to note that CUSMA was negotiated by the previous Liberal government and was finalized in 2020, well before Carney took office in March.

Carney's argument suggests that he has successfully negotiated significant concessions to prevent Trump from dismantling CUSMA. The agreement is set for renegotiation next year, and the future of these discussions remains uncertain. Trump has previously expressed his support for Carney, stating, "I like Carney a lot. I think he is a good man and we had a very good talk yesterday. He is removing tariffs which I thought was nice and we’re going to have another call soon."

Despite these positive remarks, significant challenges remain. Trump has imposed 50% tariffs on Canadian exports in sectors like steel and aluminum. Carney acknowledged this issue, stating, "Don’t expect immediate white smoke on one of these strategic sectors, but that’s the type of conversation that we’re having, and we’ll continue to have as well."

Carney's stance has shifted from his earlier, more aggressive rhetoric, where he promised a "dollar-for-dollar" response to U.S. tariffs. By the time he assumed the role of prime minister, he had softened his approach, admitting that it was unrealistic to expect a complete removal of all tariffs due to the size disparity between the U.S. and Canadian economies.

After missing deadlines for a deal in July and August, Carney's position evolved to emphasize that "no deal is better than a bad deal." This led to his recent claim that Canada has already achieved a favorable trade agreement with the U.S. As negotiations continue, it remains unclear whether Carney's shift from a confrontational to a more conciliatory approach will yield positive results. The ongoing discussions will ultimately determine the effectiveness of his strategy.