Tuesday, 02 January 2024 12:17 GMT

Mark Carney Apologizes To Offended Trump Over Anti-Tariff Reagan Ad Says Trade Talks To Resume Once US Is Ready


(MENAFN- Live Mint) Canadian Prime Minister Mark Carney has confirmed that he personally apologised to US President Donald Trump over a controversial Ontario government television advertisement opposing American tariffs. The move comes amid heightened trade tensions between the two nations, following Trump's decision to suspend negotiations last week.

Why did Carney apologise to Trump?

Speaking to reporters on Saturday in Gyeongju, South Korea, where he was attending the Asia-Pacific Economic Cooperation (APEC) summit, Carney said he had taken responsibility for the episode, acknowledging that the advertisement had strained diplomatic relations.

“I did apologise to the president,” Carney stated. He revealed that he had previewed the advertisement before it aired and had advised Ontario Premier Doug Ford not to proceed.“It's not something I would have done,” he added.

“I'm the one who is responsible in my role as prime minister for the relationship with the president of the United States,” Carney said.“So things happen. We take the good with the bad, and I apologised.”

How did Trump respond to the apology?

President Trump confirmed receiving the apology from Carney but downplayed the likelihood of an immediate resumption of trade talks.

Asked by reporters aboard Air Force One whether negotiations between the White House and Ottawa would restart, Trump said:

“No, but I have a very good relationship. I like him a lot, but you know, what they did was wrong. He was very nice. He apologised for what they did with the commercial.”

The comments come after Trump called off negotiations last week, following the airing of the anti-tariff advertisement in the United States. The ad reportedly referenced a 1987 radio address by former President Ronald Reagan, criticising protectionist policies.

What caused the breakdown in trade talks?

The talks collapsed after Trump accused Canada of undermining discussions through the Ontario government's ad campaign. The US president subsequently threatened to impose an additional 10% tariff on Canadian imports, further escalating tensions.

Before the fallout, both sides had been working toward agreements on sectoral steel and aluminium tariffs and energy cooperation. Carney had also pitched Trump on reviving the Keystone XL pipeline project, a long-standing point of interest for both nations.

“Unfortunately we've had some bumps on the road,” US Energy Secretary Chris Wright said on Friday at the G7 energy and environment ministers' meeting in Toronto.“I would say the goal is to bring those back together and I think to see cooperation between the United States and Canada across critical minerals, across oil and gas.”

What happens next for US–Canada trade relations?

While Trump maintains that he is satisfied with the existing trade framework, Carney indicated that Canada remains open to dialogue when the United States is ready to re-engage.

“After all the noise of this week, Canada still has the best trade deal of any country with the US,” Carney said on Saturday.“And we stand ready to negotiate an even better one for both countries.”

Trump has recently emphasised his contentment with the current trade arrangement, which imposes US import taxes on autos, lumber, steel, and aluminium, along with a 35% tariff on goods not covered under the US–Mexico–Canada Agreement (USMCA) signed during his first term.

Can the US and Canada find common ground again?

Despite the recent turbulence, both governments have signalled interest in eventually returning to the negotiating table. Wright noted that there had been“friction in the talks between Canada and the US for some good reasons,” but stressed that the long-term objective remained closer cooperation in key sectors, particularly energy and critical minerals.

For now, Carney's diplomatic overture may ease tensions, but the future of US–Canada trade relations will depend largely on how quickly the White House is willing to reopen discussions.

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