Canada, U.S. have deep relationship despite shift to ‘transactional’ trade: Carney

TORONTO — Prime Minister Mark Carney said there is a path toward a deal with the United States on steel, aluminum and energy following his meeting with President Donald Trump this week, as he drew applause from Canadian business leaders for how he is managing Canada’s relationship with its southern neighbour.

Speaking virtually at a conference on U.S.-Canada relations in Toronto hosted by BMO and Eurasia Group, the prime minister said there will be more bilateral deals alongside the Canada-United States-Mexico Agreement, known as CUSMA.

He said the meeting in Washington involved a “very granular” discussion around steel, aluminum and energy and there is “a pathway to specific progress there.”

Carney said the trade relationship has moved to become more “transactional,” but that both countries are in the process of finding the right balance.

“There is still a very deep, enduring and reinforcing relationship between Canada and the United States,” he said. “As Canadians, we benefit from that.”

His comments echoed those of his Canada-U.S. trade minister, Dominic LeBlanc, who told reporters in Washington on Tuesday, that Carney and Trump had dispatched their teams to make progress on deals on steel, aluminum and energy.

Despite the shifting trade relationship, Carney said Canada and the U.S. continue strong collaboration on border security, defence and responding to global conflicts.

At the Toronto conference, the chief executives of Enbridge Inc. and CPKC Ltd., along with Alberta Premier Danielle Smith, said Carney’s focus on how the U.S. benefits from having trade issues settled with Canada is better than a more antagonistic tack.

CPKC chief executive Keith Creel said the way Carney has lowered the rhetoric and tone of talks, and his taking a more pragmatic approach to trade discussions, is helping establish a better relationship than the one former prime minister Justin Trudeau had.

“I’m actually encouraged as of late,” said Creel.

“I think there’s a lot of respect that’s been established between Prime Minister Carney and President Trump, which I think is important, critically important, to the deal-making that gets done.”

He said there’s room for both Canada and the U.S. to push to make their countries stronger, and that the efforts can be complimentary.

Enbridge Inc. chief executive Greg Ebel also emphasized the mutual benefit that can come from better connection, especially on the energy side, as both countries look to boost national security through energy and economic security.

“The ability to have win-win solutions are really there if we act,” said Ebel.

“So you’ve got a lot of agreement, but just slightly different tactics, maybe significantly different tactics to be able to achieve it, but at least going in the same direction for the same goal has to be somewhat positive.”

Smith also welcomed Carney’s approach, saying Trump won’t be swayed by hearing that tariffs are bad for Canada, but by what aligns with his interests.

“His love language is, let me tell you how I can make America even greater. Let me tell you how Canada being able to provide you raw materials or critical minerals or energy and natural gas, allows you to have energy dominance in the world,” said Smith.

“I’m beginning to see that Prime Minister Carney is speaking in those terms.”

She said that she understands Ontario Premier Doug Ford has a difference perspective, as industries in the province such as steel and automobiles are more directly threatened by current tariffs. But she thinks a more conciliatory tack will work better than threats.

“I never thought ‘elbows up’ was going to get us to a deal with this particular president, and I think that [Carney] is beginning to see that the relationship, and putting some of the credits in the bank account, is going to get us a lot further.”

Ford, also speaking at the summit, continued to advocate for a more aggressive approach, threatening to cut off energy and resource exports if the U.S. doesn’t relent on industry-crushing tariffs.

“If we can’t get a deal, we have to hit them back twice as hard,” he said.

He said he doesn’t want to make such moves, but that he’s not going to sit back as Trump’s policies hit key sectors.

“If he wants to destroy our auto sector and destroy our steel sector, and for Quebec the aluminum sector, there won’t be a grain of critical minerals going south of the border, there won’t be one ounce of energy coming from Ontario.”

This report by The Canadian Press was first published Oct. 8, 2025.

— With files from Catherine Morrison in Ottawa

Companies in this story: (TSX:BMO; TSX:ENB; TSX:CP)

Ian Bickis, The Canadian Press