Carney optimistic on U.S. trade deals, but says ‘don’t expect immediate white smoke’

Prime Minister Mark Carney says trade talks with the United States have made some progress, but people shouldn’t expect an immediate deal.

He said he spoke directly with President Donald Trump this week, and the talks are now focused on steel, aluminum, and automobiles.

With 50 per cent American tariffs still hanging over the steel industry, Carney isn’t promising anything soon, but says that’s where talks with the U.S. are right now.

The prime minister was going into a cabinet retreat in Toronto Wednesday morning, when he let out the news that he spent part of his Labour Day talking to Trump.

“I last spoke to the president Monday evening. We spoke at length,” said Carney.

He said his talk with Trump was constructive.

In Washington Wednesday, meeting with Poland’s president, Trump didn’t sound like someone getting ready to back down on tariffs.

“Tariffs are vital to our country, and just so you know, other countries use them on us, but I just use them a lot better,” said Trump. “We have trillions of dollars coming into our country, if we didn’t have tariffs we’d be a very poor nation.”

But Carney says Canada already has free trade for 85 per cent of its exports to the U.S., and top officials are working on areas like steel.

He said they’re making progress, just don’t hold your breath waiting for a deal.

“Don’t expect immediate white smoke on one of these strategic sectors, but that’s the kind of conversations that were happening,” said Carney.

Carney and his cabinet were preparing for a new session of Parliament this fall, with the prime minister promising a new era of government austerity.

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“The federal government has been growing, spending as a whole at 7 per cent a year on average for over a decade,” said Carney. “That’s twice the rate of growth of the economy on average — it’s not a sustainable situation.”

“We need to rein in on spending, need to find efficiencies,” said Carney.

Conservative leader Pierre Poilievre said Carney’s government has left young people unable to afford homes and often without jobs.

“Young people today form what I call ‘Generation Screwed’,” said Poilievre.

He said Carney should cut the Temporary Foreign Workers program, which allows foreigners into Canada to work.

“The principle is very simple: Canadian jobs for Canadian workers,” said Poilievre. “Canada first, Canada always.”

Carney says the foreign workers program is up for review.

“It’s part of what we’ll be discussing, how well the Temporary Foreign Worker Program is working,” said Carney.

With the House of Commons due to resume in less than two weeks, and Carney leading a minority government, Peter Graefe, a political science professor at McMaster University, says Carney has to start getting things done.

“He’s promised change, but it’s not clear to many Canadians what exactly he has done, or will be getting done soon,” said Graefe. “So people’s willingness to grant him good faith that he represents the voice of change, will run out very quickly if he’s unable to deliver.”

As for government austerity, Carney argues that cutting back federal spending will open the way for the big projects he’s been talking about, and encourage new investment in Canada.

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