Tensions between Canada and the United States are rising after Canadian Prime Minister Mark Carney pushed back against Commerce Secretary Howard Lutnick’s claims that Ottawa derailed a nearly completed trade deal for political reasons. Carney defended Canada’s position, saying the country will always stand up for its own interests while insisting that a mutually beneficial agreement with the U.S. remains possible. Meanwhile, President Donald Trump issued a sharp warning to Carney, suggesting that Canada’s economy could suffer if relations remain strained. The latest exchange raises fresh questions over whether Washington and Ottawa can revive stalled trade negotiations.
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NewsTranscript
00:00With all respect, appointed, unelected cabinet members in the United States are experts on Canadian politics.
00:08Including Howard Lutnick, say you walked away from their deal because of domestic politics,
00:13and they also say any future deal won't be as good as the one you said no to.
00:18What do you say to him and other Republicans?
00:20Well, I don't communicate with Canadians.
00:26In the U.S. administration, I communicate with the president.
00:30So it's not a comment directed to those individuals per se.
00:35The first thing is that, look, we were elected 16 months ago, 17 months ago, to build Canada strong and
00:51build Canada strong for all.
00:52And that's what we've been focused on.
00:54The core of it is announcements such as today and everything that it represents.
00:58It's building at home.
00:59It's that positive attitude building out.
01:01It's one Canadian economy.
01:03It's diversifying an economy with more than 20 partners around the world, reliable partners who want to do more with
01:10Canada.
01:10That's the core of what we're doing.
01:14I don't think, with all respect, appointed, unelected cabinet members in the United States are experts on Canadian politics.
01:27Our core role, everything this government is doing, everything I'm trying to do, is to work with provinces, work with
01:36willing partners around the world, work with labor, work with business to move forward to the benefit of our citizens.
01:42That's the small p.
01:44If you want to call that politics, that's small p politics.
01:47We're not positioning on this stuff.
01:48I'll say one other thing, which is that there are a few issues that the United States was arguing right
01:55up to the last hour.
01:57Red lines, we're not going to change, boom, it's in there, you know, our way or the highway, take it
02:01or leave it, you know, attitude.
02:04That now they're not.
02:06So all of a sudden they don't care about Canadian language or culture and those elements.
02:11Well, if they didn't care, they should have kept them in the deal up in the last hour.
02:14But it's good.
02:14We welcome that we care about those issues.
02:19Those are rights.
02:19They're fundamental to who we are.
02:21So that's not there.
02:24You know, an F-350 pickup, which is going to be built in the Ford factory in Oakville, 350s, 450s,
02:32550s, where I grew up in Alberta, those, you know, those are subcompacts.
02:39And same here, right?
02:40And they're just discovering that and they're like, oh, of course we weren't going to keep them out.
02:44Well, they were going to keep them out, right, core plant and other elements.
02:49So some of these, some of what they're saying now is different than what they were drawing the line on.
02:56And we are always going to stand up for what's in the best interest of Canada.
03:01Canadian workers, Canadian families, not look for an easy win, not look for an announcement, but something that's durable.
03:08And that deal is possible.
03:11That's in both of our benefits.
03:13And I'll say one final thing, which is the deal that's possible that's in the interest of Canadian workers, families
03:19and businesses is also the deal that is in the interest of American families, American businesses, American consumers.
03:29And, you know, we're ready to sit down and strike that deal when the Americans.
03:33And when the Americans stop doing memes, stop throwing shade, stop trying to be tough and start being serious about
03:42having those discussions, we can have those discussions.
03:45But it's not constructive, but that's their democracy.
03:49The message from Canadians, I think, is clear.
03:53They've given their support more than 50 percent in each of these ridings to the government's plan.
03:59And I think that's because Canadians are united and Canadians are ready.
04:03We've been buying Canadian.
04:04We've been visiting Canada.
04:06We've been reinforcing our strength here at home and diversifying our partnerships abroad.
04:11That's been the plan of this government since the start.
04:13We've been putting in place.
04:15It's working.
04:16Still early days, but it's working.
04:18We're growing jobs at four times the rate of the United States.
04:21We have the highest level of foreign direct investment in this country.
04:24First off, I want to congratulate the candidates, Daniel Gobey, Tanvir Shanoaz, Brayden Cayley,
04:31for their victories in these by-elections, in the circumscriptions, in the writings of Shkudumi-le-Fort,
04:43Beaches East York, and North Van Cap Milano.
04:48All very important.
04:49I want to also sincerely thank all the candidates who put themselves forward, their teams, their volunteers,
04:56for all the hard work over the course of the summer, over the course of this campaign,
05:00for their dedication to our democracy.
05:04The message from Canadians, I think, is clear.
05:08They've given their support more than 50 percent in each of these ridings to the government's plan.
05:14And I think that's because Canadians are united and Canadians are ready.
05:18We've been buying Canadian.
05:19We've been visiting Canada.
05:21We've been reinforcing our strength here at home and diversifying our partnerships abroad.
05:26That's been the plan of this government since the start.
05:28We've been putting in place.
05:30It's working.
05:31Still early days, but it's working.
05:33We're growing jobs at four times the rate of the United States.
05:36We have the highest level of foreign direct investment in this country in two destinies.
05:40Congratulations on the World Cup.
05:44The Spanish interlude there.
05:48We have a rate of, as I say, foreign investment at that level.
05:55Our exports are on track outside of the United States to double.
05:59They've been growing strongly.
06:01And our rate of growth in the most recent quarter is the strongest in the G7.
06:06Early days, Canadians United reinforcing our plan.
06:10We're going to keep going.
06:11And I look forward to your questions.
06:11Avez-vous gagné chez Kitsimi grâce à Donald Trump?
06:16Non, non.
06:17Grâce à le plan.
06:19Grâce, premièrement, au candidat.
06:21Nous avons un candidat exceptionnel avec M. Coribey.
06:25Un fermier, un entrepreneur, une garde de terrain.
06:30Il connaît bien la circonscription et le secteur agroalimentaire.
06:37Alors, premièrement, à cause de notre candidat exceptionnel.
06:41Et j'ai hâte de travailler avec lui.
06:43Premièrement, deuxièmement, je crois que c'est à cause…
06:47J'étais là pendant la campagne.
06:50Et c'est à cause de…
06:51Ce n'est pas des questions de Donald Trump.
06:53C'est la question de ce qu'on fait maintenant ici au Canada
06:56afin de bâtir un Québec fort, bâtir un Canada fort.
06:59Oui, c'est important de protéger et promouvoir la langue française.
07:05Protéger et promouvoir la culture québécoise.
07:07Protéger et promouvoir la gestion de l'offre, par exemple.
07:11Oui, c'est important.
07:12Mais ce sont des valeurs, des valeurs canadiennes, des valeurs québécois.
07:17Et oui, il y a des menaces maintenant de M. Trump.
07:21Mais je crois que c'est un message positif pour le Canada
07:24et pour le plan du gouvernement.
07:26On Saturday, you said that the Americans were attempting to limit Canada's ability
07:32to do trade deals, that that was a part of the negotiation.
07:35On Friday, they were doing that, yes.
07:36Can you give us the specifics on what products or any details about it?
07:40It was a broader, well, once you introduce on a broad range of products in manufacturing sectors,
07:48then once you carve out those areas and potentially have those limitations,
07:53limitations that weren't well explained, limitations that were introduced late in the negotiations,
07:59once you have those, as you can appreciate, with virtually any country
08:03that we either have a free trade deal with or we are negotiating with.
08:07Think of the ASEAN countries. Think of India.
08:09Many others, the Philippines, Thailand, Mercosur.
08:14They all have manufacturing sectors.
08:16They all would be affected by these measures.
08:18And plus, Canada is a sovereign state.
08:20We will strike free trade deals with the countries we wish to strike free trade deals with.
08:24Prime Minister, what do you make of U.S. Cabinet secretaries insulting the Canadian military?
08:31It's beneath their office.
08:32Sir, are you going to lead your party in the next election?
08:34On that, American officials have been mocking Canada's military, its cadets.
08:38You had Trump rename Lake Ontario.
08:40And also some officials saying that the U.S. is not actually at war with Canada.
08:45The U.S. is not actually at war with Canada.
08:47What do you make of all this?
08:48And what is your message to the U.S. right now?
08:50What needs to happen next?
08:52Our message, first off, has always been, our plan has always been standing up for Canada,
08:58first and foremost, here at home, building Canada at home, diversifying abroad.
09:01Everyone in the world wants to do more with Canada, and we're doing that in a way that's
09:06in the best interest of Canadian workers, Canadian families, Canadian businesses.
09:10That's first.
09:10We have a positive, there's a positive opportunity that has always existed with the United States
09:17for a mutually beneficial trade deal that respects Canadian sovereignty,
09:21which respects the rights of the French language and the Colombian culture, but it must have
09:32those characteristics.
09:34And when the Americans stop doing memes, stop throwing shade, stop trying to be tough, and
09:42start being serious about having those discussions, we can have those discussions.
09:46But it's, look, it's not constructive, but that's their democracy.
09:52Are you going to lead your party into the next election?
09:54I just led the party into two by-elections, and I'm very pleased that we won all three.
10:00I'm pleased to have a remarkable caucus.
10:04You know, I view my role, as my colleagues do, is to do our job.
10:10We're sent to Ottawa for a reason.
10:13We're sent here at a critical time.
10:16I'm blessed by having three great colleagues who are going to be coming in from very different
10:21backgrounds, very different ridings, and we're going to stand up for Canada, we're going
10:26to build this country, we're going to help unite this country, and we're going to build
10:29it for all, and I'm going to focus on that, and that's my concern.
10:34Did Doug Ford have any role in these negotiations?
10:41In killing these negotiations, Doug Ford, did he have any role in that?
10:44No, look, the decisions, but, I'm sorry, let me frame.
10:48The premiers play a very important role in this process.
10:52Labour plays an important role in this process.
10:54All stakeholders play a role in this process.
10:56We consult with the premiers, take into account their views, work with them, both in terms
11:02of supporting Canadians, whatever trade action the U.S. or others take, and whatever potential
11:08deals are there.
11:09The decisions on trade are the decisions of the Government of Canada.
11:14I'm the Prime Minister.
11:17Ultimately, I am responsible with the Cabinet for those decisions.
11:20We take those decisions in the round.
11:22We took those decisions.
11:23I enumerated, I enumerated on Saturday, and can repeat.
11:29And the chief negotiator gave interviews, Monsieur LeBlanc, others have given interviews.
11:35Those of us who are at the table, or next to the table, if you will, know exactly why
11:40an accumulation of issues, each of them serious enough, okay?
11:46The issues with respect to language and culture, enough to not have a deal.
11:51The issues Mr. Gray just asked about, with respect to restrictions on future trade deals.
11:57Restrictions on our sovereignty, enough not to have a deal.
12:00Issues with respect to locking in an uncompetitive trade arrangement in our key industries, automobiles
12:09being one of them.
12:10Enough to not have a trade deal.
12:13And then the general attitude, and I'll leave you with this, which I think this is a very
12:17important point, is that the attitude of the United States in these discussions, and subsequently,
12:27has been one that the core Canadian industries either would be subsidiaries, effectively, of
12:38the United States industries, or would put in place terms where those industries would
12:44be gradually wound down in Canada and wiped out.
12:48We're not going to, of course we're not going to accept those terms.
12:50And by the way, it's misguided.
12:51The United States auto industry is made stronger by the Canadian and the Mexican auto industries.
12:58And at a time of big, big change in auto, it's important that we work together.
13:02That's why I say, yes, there is a mutually beneficial deal.
13:06There were elements of that mutually beneficial deal that we were moving towards, which is why
13:10we were still at the table.
13:12But we never viewed that we had that deal.
13:16And it diverged towards the end.
13:18At some point, maybe it'll converge again.
13:20But last point, and I think, if I may, what's a clear message from last night in three very
13:27different ridings across this great diverse country, is that Canadians are behind the plan
13:33of the government, which is first and foremost about building strong at home, diversifying
13:38with reliable partners, building Canada strong for all.
13:42That's first and foremost.
13:43That's what I'm going to go back in there and work on today.
13:46And that's what my colleagues and my new colleagues are going to focus on.
13:48How can you get a deal with an American?
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