Carney Draws a Red Line on Autos in US Trade Talks
Prime Minister Mark Carney said in Manila on November 14 that Canada will not settle for a deal with the United States that is not consistent with a viable Canadian auto sector, drawing a firm line in trade talks with Washington.
Carney was speaking at a news conference on the sidelines of the ASEAN summit, after what he called a long and substantive conversation with President Donald Trump. United States Trade Representative Jamieson Greer and White House Chief of Staff Stephen Miller also took part in the call, and Carney said the talks are making progress, but nothing is signed yet. The prime minister said he would not trade away the future of an industry that supports towns and suppliers across Ontario.
Progress, but no deal yet
“We are making progress. We are not there yet,” Carney said, according to reports. He called the auto sector one of the most challenging issues in the talks and one of the fundamental issues in the negotiation, adding that Canada and the United States are moving toward an agreement on it.
Talks with Washington collapsed in August, when Canada pulled out after what it called last minute demands from the United States that included a hit to the auto sector. Since then the Trump administration has kept tariffs of 25 percent on Canadian made autos in place, putting heavy pressure on an industry that typically exports nearly 90 percent of its production to the United States.
A tariff deadline looms
A threatened 50 percent auto tariff hangs over January 1, 2027, adding urgency to the talks, according to reports. The immediate cause of tension is the planned sale of the Stellantis assembly plant in Brampton, Ontario, after the carmaker abandoned plans to build the Jeep Compass there and shifted production to Illinois, with more than 2,000 layoffs in Canada.
Carney also criticised Stellantis over the sale of the plant to a defence contractor, according to reports. Canada’s industry minister has accused the carmaker of breaching a funding agreement, and Carney said a stable trading relationship for the auto sector is in the interest of Canadian workers and the United States alike. The latest on the talks is set out in the report from Manila, which also covers the Asian trade deals announced on the same day.
