The United States and Canada have stepped up negotiations on a possible economic and security agreement, with draft frameworks having been exchanged in recent weeks, CTV News reported.
The talks are an effort to stabilize relations between the two long-time allies following months of mounting trade tensions and strategic uncertainty. The two countries have been locked in a trade war since February, when US President Donald Trump imposed sweeping tariffs on Canadian goods.
While Canadian and American officials confirm that documents are actively circulating between negotiating teams, they caution that any final agreement still requires direct approval from President Trump, whose unpredictable decision-making and preoccupation with domestic controversies, including sending in the military to “quell” recent peaceful protests in Los Angeles and publicly feuding with billionaire now supplicant Elon Musk, could delay progress.
At the height of the tariff tiff, Prime Minister Mark Carney described the state of the Canada-US relationship as “over.” On Monday, he accused Washington of looking to “monetize its hegemony” around the world by making access to its market more costly. He said “middle powers” such as Canada must act to defend themselves because “if they’re not at the table, they’re on the menu.”
But he has nevertheless remained open to a new, redefined partnership focused on mutual economic and security interests, announcing a new strategy just a week before Canada is to host the G7 Summit on June 15 to 17.
Speaking to reporters on Wednesday, Canada’s Finance Minister François-Philippe Champagne called the situation “very dynamic,” noting that Canada is united in defending its industries against unfair trade measures.
“We’re fighting for Canada. We’re fighting for industry,” Champagne said. “And making sure [Washington] understands this is damaging on both sides of the border.”
Industry Minister Mélanie Joly confirmed that Carney and Trump have held direct conversations in recent weeks, although no public readouts of those talks have been released.
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