Carney says Canada making progress in auto talks with U.S., but no deal yet

Prime Minister Mark Carney said Canada is making progress in trade negotiations with the United States that would preserve the long-term viability of the Canadian auto sector. He said a deal is possible but not yet reached. The Globe and Mail reported his comments.

Carney called talks over autos "one of the most challenging issues in negotiations" with Washington. He said his government will not settle for a deal that is inconsistent with a viable Canadian auto sector. He also said Canada is making headway on terms that would leave a path to profitability for Canadian auto production.

"We are making progress. There is the possibility of a deal, a bilateral deal, but we're not yet there," Carney said. A bilateral deal is one struck between two countries. He said he sees such a deal with the United States scaling back U.S. tariffs, or taxes on imported goods, on steel, aluminum and autos.

The backdrop is a 25-per-cent U.S. tariff on Canadian-made autos. That tariff applies with an exemption for U.S. parts in the vehicles. The value of Canadian passenger car and light truck exports to the United States fell nearly 12 per cent from 2024 to 2025.

Carney said he had a "long, substantive conversation" with U.S. President Donald Trump just before leaving Dublin for a trip to Asia that includes three summits. He said Stephen Miller and U.S. Trade Representative Jamieson Greer were among others on the call. Carney also said the longer-term competitiveness of the U.S. auto sector is partly determined by how closely it is integrated with the Canadian auto sector.

Separately, Carney announced in Manila that Canada had wrapped up talks on a trade agreement with the Philippines.