Clerk of the Privy Council Michael Sabia in Washington to continue trade talks

Prime Minister Mark Carney says he spoke to U.S. President Donald Trump on Monday, but suggested it's unlikely American tariffs, which are still causing economic pain for major Canadian sectors, will be lifted in the immediate future. 

The conversation fell on the day that most of Canada's counter-tariffs on U.S. goods were lifted — a move seen as a goodwill gesture as Carney's government pushes for Trump to lift tariffs on industries including steel and aluminum. 

The prime minister characterized his Monday talk with Trump as a "good conversation." 

"We spoke at length on a wide range of issues, including on trade, but geopolitical, other issues, labour issues, et cetera," Carney said on his way into a meeting with his cabinet in the Greater Toronto Area. 

Carney said his new clerk of the Privy Council, Michael Sabia, is in the U.S. capital to meet with American counterparts. Sabia joins a revolving door of officials, including senior cabinet members, who have travelled south to speak with U.S. lawmakers and members of the Trump administration.

"Don't expect immediate white smoke on one of these strategic sectors. But that's the type of conversation that we're having and will continue to have," said Carney of Sabia's visit.

Carney says he had a 'good conversation' with Trump on Monday evening

News of the conversation came as surprise. The Prime Minister's Office (PMO) typically releases summaries, known as readouts, when the prime minister speaks with world leaders but Carney's office hadn't disclosed the Monday conversation. 

"The prime minister has always been clear that he and the president are in close and frequent communication, and that is in the interest of workers, business and all Canadians," the PMO said in a statement Wednesday. 

Earlier this year, Canada placed duties on $60 billion worth of U.S. goods, but removed them this week from products that are covered by the Canada-U.S.-Mexico Agreement (CUSMA).

Conservative Leader Pierre Poilievre — who will face off against Carney in the House for the first time this fall after winning a byelection — called the move "yet another capitulation and climb down by Mark Carney." 

Poilievre has said if the Conservatives had formed government in April he would "have gone to the president, respectfully, and said: 'You remove your tariffs, we remove ours."

The unresolved trade war and upcoming CUSMA review form the backdrop as Carney and his cabinet hunker down for two days of meetings before the House of Commons resumes later this month.

The upcoming budget is also likely to be a focus as his inner circle gathers behind closed doors. The budget is usually tabled in the spring but the re-elected Liberal government punted it to October due to the federal election.

During the election campaign, Carney promised to balance the operating budget over the next three years while also pledging billions more in defence spending and promising to build major projects.

"It's a budget of austerity and investment at the same time and that's possible if you have discipline," he said Wednesday.