Canadian Prime Minister Mark Carney has disclosed that he had a lengthy conversation with US President Donald Trump on Monday evening (September 01, 2025). Both neighbouring countries are working together to resolve a row over tariffs on commodities and automobiles. Carney confirmed that talks were focused on relief for sectors still hit by hefty US tariffs, including steel, aluminium, autos and forest products. "There's no guarantee, but we are making progress," he commented.
Image for referential purposes only
Unlock in-depth insights from — The World of Aluminium Extrusions – Industry Forecast to 2032
Canada recently dropped 25 per cent retaliatory tariffs on USD 21 billion of US products such as orange juice, peanut butter and motorcycles with an aim to reset trade ties. While welcomed in Washington, Canada has kept tariffs on US steel, aluminium and vehicles. The auto sector, in particular, remains strained. Autos assembled in Canada face a 25 per cent US tariff, while Canadian steel and aluminium are subject to a 50 per cent levy. Treasury Secretary Scott Bessent highlighted that Detroit automakers depend on Canadian aluminium, underlining its strategic importance.
The broader picture reveals a contradiction. Tariffs were intended to revive US production but appear to be damaging demand. An analysis shows how supply chain disruptions are hurting manufacturers across North America. Data confirms this. In Q1 2025, total aluminium demand fell 4.1 per cent year-on-year to 6.53 million tonnes, reversing the 4.3 per cent rebound seen in early 2024, according to the Aluminium Association.
Both the US and Canadian PMIs slipped below the critical 50 mark in March 2025, signalling contraction. The US registered 49, while Canada was weaker at 46.3. A PMI below 50 traditionally indicates falling output and weaker demand for industrial metals.
Carney noted that aides are in Washington this week to accelerate bilateral discussions. With the USMCA treaty up for review next year, progress, or lack thereof, could define the next phase of North American trade.
Also read: China, a decade-old ally, unharmed in Guinea’s bauxite game. But why?
Responses
