Carney takes defiant tone on U.S. trade talks, O’Toole talks advisory committee

Prime Minister Mark Carney took a forceful tone Thursday when asked about the status of U.S. trade negotiations and the review of CUSMA set to begin by July 1.

Carney’s approach is supported by former Conservative Leader Erin O’Toole, who was appointed this week to a special advisory committee on Canada-U.S. economic relations.

“We’re not sitting here taking notes, okay? And taking instruction from the United States,” says Carney.

The prime minister’s comments come amid reports from the CBC and Globe and Mail that the Trump administration is demanding Canada make specific policy changes on trade “irritants” before negotiations even begin. These demands include dairy supply management, provincial bans on American liquor sales, and the Online Streaming and Online News Acts.

Some have framed this precondition to engage in talks as an “entry fee.”

Carney dismissed the list, pointing instead to American trade barriers.

“Look, you know what’s an irritant? 50 per cent tariff on steel. 50 per cent tariff on aluminum. 25 per cent tariff on automobiles. All the tariffs on forest products. Those are more than irritants, those are violations of our trade deal,” Carney says.

In an interview with CHCH News, O’Toole said he agrees with the prime minister’s approach and that Canada must pursue a fair deal from a position of strength.

WATCH MORE: Canada pushes back as U.S. seeks ‘entry fee’ to start negotiations

“While we would like the U.S. partnership and the strong relations we’ve had to continue, it’s the U.S. walking away from that,” O’Toole says. “And if they do, we have to be prepared to be more self-reliant.”

O’Toole said he doubts the Trump administration will back down from its tariff agenda, noting it is a policy Donald Trump has supported for decades.

“He looks at trade kind of in an old economy fashion and I don’t think we’re going to reinvent that with him,” O’Toole says.

While O’Toole does not believe a completely tariff-free deal is possible, he suggested there is room to negotiate for stability.

“If we could get some tariffs down to single digits, if we have a more stable market, a more stable dollar, those really become small tariffs we can live with,” he says.

Carney also suggests there is room for give-and-take, specifically regarding U.S. complaints about alcohol bans.

“We can make progress very quickly on that, with progress in other areas,” the prime minister said.

Meanwhile, Conservative Leader Pierre Poilievre doubled down on his own strategy on Thursday. Poilievre said he could negotiate a tariff-free deal by using a reserve of Canadian oil and critical minerals as leverage.

WATCH MORE: Carney revives advisory committee on Canada-U.S. economic relations