Trade Tensions Between Canada and the U.S.

Prime Minister Mark Carney told reporters on Wednesday morning that the U. S. doesn’t control free trade terms with Canada.

When asked about ongoing negotiations for the Canada-United States-Mexico Agreement, Carney mentioned that the Canadian team is aware of what the U. S. refers to as “trade irritants,” adding, “we have some on our side as well.”

“We’re ready to tackle those issues. We will sit down and work through them with a broader negotiation approach. We’ve made counter-proposals, which they know about. And soon, we’ll really roll up our sleeves.”

Carney Prime Minister Mark Carney arrives on Parliament Hill in Ottawa on Wednesday, April 22, 2026. THE CANADIAN PRESS/Sean Kilpatrick

Earlier this month, the U. S. put together a list of key issues in trade with Canada, including extensive bans on American liquor sales, Canada’s plan to cut down plastic waste, and dairy products.

It also highlighted procurement rules in Ontario, Quebec, and British Columbia that effectively shut out bids from U. S. companies.

U. S. Commerce Secretary Howard Lutnick brought up these concerns during a Senate committee hearing in Washington on Wednesday.

A heated discussion

Lutnick’s concerns regarding Canadian trade surfaced during an intense exchange with Democratic Sen. Jeanne Shaheen from New Hampshire, who questioned him about Canadian tourism in her state.

She stated that cross-border tourism fell by 30 percent last year “largely due to the loss of trust and goodwill because of this administration’s rhetoric around Canada.” She also referenced Lutnick’s recent comment about Canada’s trade agreement with China when he said “they suck.”

“We have all those Canadian visitors who aren’t coming because of your comments and comments by the administration. How does that help our economy?” she asked.

“It is outrageous that Canada will not put U. S. spirits on the shelf,” Lutnick responded, labeling it “insulting and disrespectful to America.”

New advisers for a ‘two-way street’

On Tuesday, Carney introduced a new advisory group ahead of formal trade discussions this summer.

The council includes some members from the previous team along with former Conservative leader Erin O’Toole, former Conservative cabinet minister Lisa Raitt, former premiers P. J. Akeeagok and Jean Charest, as well as Ralph Goodale who was previously Canada’s High Commissioner to the United Kingdom.

Dominic Le Blanc will lead the council as U. S.-Canada Trade Minister. In an interview with CTV Power Play host Vassy Kapelos on Tuesday, he described it as a “forum for us to receive advice and input” from politicians across various sectors of Canada’s economy.

“They’ll also get a chance to speak directly with American business leaders and their counterparts; it’s definitely a two-way street.”

‘We were very close’: Le Blanc

Kapelos pressed Le Blanc about comments made by the U. S. ambassador to Canada last week during a podcast where he claimed there haven’t been any serious negotiations between both countries since last year.

Le Blanc disagreed saying “it’s true that in October of last year we thought we were very close to an agreement that would have brought significant relief to particularly the steel and aluminum sectors,” mentioning an “interesting offer on energy.”

At that time Carney and U. S. President Donald Trump agreed automotive and softwood lumber trade would be next steps according to him.

“The president said it publicly; he instructed his negotiators to halt those discussions with Canada because he was upset about an ad that Ontario government was running during World Series.”

Talks resumed between Lutnick and U. S. Trade Representative Jamieson Greer at the start of this year too, he added.

More details will follow.

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