Canadian and American trade negotiators had begun drafting potential agreement details before U.S. President Donald Trump suddenly terminated trade discussions last week, according to Canada’s ambassador in Washington. Ambassador Kirsten Hillman informed the Senate foreign affairs committee that they were in the process of outlining a possible initial agreement between Canada and the United States. Trump abruptly halted negotiations through a late-night social media announcement last Thursday due to an advertisement by the Ontario government using former U.S. president Ronald Reagan’s words to convey an anti-tariff message to American audiences.
During the committee hearing, Hillman was questioned about the direction of the talks before the unexpected break. While she acknowledged progress following Prime Minister Mark Carney’s recent visit to Washington, she noted that certain issues were still unresolved. Hillman clarified that although they were not on the brink of an agreement, significant advancements had been made in recent weeks, surpassing past achievements.
Earlier on the same day, Carney and Trump had a brief encounter for the first time since the talks were halted. They shared a toast at a dinner before the Asia-Pacific Economic Cooperation Summit (APEC) but had limited interaction otherwise. Ontario Premier Doug Ford announced the withdrawal of the contentious ad that triggered Trump’s reaction, although it had already been aired over the weekend, including on American networks during the World Series.
Initially, Ottawa aimed for a comprehensive trade and security agreement with tariff relief, but recent efforts have focused on addressing specific sectoral tariffs. Reports suggested a potential deal on aluminum and steel before the APEC summit, but Carney downplayed these claims, emphasizing that discussions with the U.S. were ongoing and cautioned against overstating the progress.
Hillman revealed that recent discussions primarily centered on steel and aluminum but emphasized that other industries were not disregarded. The United States proposed prioritizing a few issues while maintaining conversations on others, suggesting a structured approach to negotiations rather than exclusion of sectors. This sequencing strategy was highlighted by Hillman to clarify that the focus on certain sectors did not negate discussions on other industries.
