Overview

• Prime Minister Mark Carney held a second Oval Office meeting with President Donald Trump on Tuesday before a working lunch, with both sides downplaying prospects for immediate breakthroughs.
• Key U.S. levies on Canadian goods remain in place, including 50% tariffs on steel and aluminum, 25% on autos with U.S.-parts carve‑outs, a 35% general tariff on certain imports, and a recent 10% softwood duty that pushes total lumber charges above 45%.
• Canadian officials and industry groups targeted sector‑specific relief starting with steel, though the Aluminium Association of Canada and other observers said they did not expect an aluminum deal from this visit.
• Trump touted tariffs as successful and repeated claims that companies are relocating to the United States, while Canada has sought to ease tensions by scrapping a planned digital services tax and rolling back some counter‑tariffs.
• Both governments are preparing for the 2026 USMCA review after launching public consultations, with the U.S. trade chief signaling a tilt toward separate talks with Canada and Mexico as Canadian domestic pressure mounts over tariff‑linked economic pain.