Prime Minister Mark Carney’s first official visit to Washington marks an early test of his government’s approach to managing Canada-U.S. trade tensions. With CUSMA negotiations expected to restart in the coming year, both sides are seeking common ground on tariffs, defence and economic co-operation.
BNN Bloomberg spoke with Diamond Isinger, former special advisor on Canada-U.S. relations in the Prime Minister’s Office under Justin Trudeau, about the tone of the meeting and what it signals for future trade talks and the broader market outlook.
Key Takeaways
- Carney’s first Washington visit marks a key moment before the CUSMA review process begins.
- The meeting focuses on rebuilding trust and rapport between Carney and Trump.
- Tariff relief is possible but likely limited to targeted sectoral changes.
- Canada should prioritize a strong, fair deal over a quick agreement to avoid long-term drawbacks.
- Pressure from U.S. businesses facing higher costs could push the White House toward compromise.
Read the full transcript below:
MERELLA: Prime Minister Mark Carney is now in Washington. We heard from the prime minister and the American president a short time ago. They will talk about trade, of course, and defence. Let’s discuss this with Diamond Isinger, former special advisor on Canada-U.S. relations in the Prime Minister’s Office under Justin Trudeau. Thanks for joining us today.
DIAMOND: Thanks for having me.
MERELLA: You heard the American president talk about the tariff situation in particular as being complicated. How do you interpret that?
DIAMOND: Complicated, to say the least. We obviously have a very complex trading relationship with the United States — not only in terms of the flow of goods and services back and forth across the border, but also the complexity of the relationship right now. Today’s meetings are an important opportunity for the two leaders — Carney being a new leader for Canada — to have some face time together and hopefully clarify each other’s intentions as we head into more trade talks.
MERELLA: Do you think the relationship now between Canada and the U.S., and between the leaders in particular, is one of the most complicated we’ve seen?
DIAMOND: Perhaps. Early signals out of today’s meetings show a bit of a balance between fun and light-hearted, but also serious and focused on getting to a deal. We’re heading into a CUSMA renegotiation and review process over the coming year, and it’s only going to get more complex. One item that hasn’t yet been clarified by the U.S. government, to my knowledge, is what the scope and scale of that process will look like and what businesses and Canadians can expect.
MERELLA: Negotiators often talk about managing expectations. Why is that key in discussions like today’s?
DIAMOND: A win out of today would be, at its simplest, a stronger and better relationship between the two leaders — a better sense of each other and a stronger rapport. But, of course, Canadian officials are managing expectations, because until something is in writing or announced formally by the two leaders — whether small or large — we know with this president that we can’t take anything for granted until it’s solidified. It’s important for Canadians to hold out for the right deal rather than the quickest deal. While there may be short-term pain for businesses, the worst outcome would be years of pain from a poor agreement.
MERELLA: So based on what you’ve said, we shouldn’t expect any tariff relief or movement on tariffs?
DIAMOND: There may be. It’s up to the two leaders to announce today. There were some positive signals in their brief joint media appearance before the Oval Office meeting. There could be some incremental shifts on specific sectoral tariffs — steel, aluminum or otherwise. But more broadly, this is about laying the groundwork for what will be a lengthy and complex CUSMA review process, and addressing concerns from many sectors across Canada about the potential impact on their businesses.
MERELLA: What do you think Washington really wants from Ottawa, in a broader sense?
DIAMOND: That’s a tricky one. In recent months, there’s been a mix of rhetoric from the U.S., including talk about reshoring and bringing jobs back that the president feels have been lost to other countries like Canada. But ultimately, the pressure is coming from Americans themselves — rising costs for consumers and businesses. I can’t imagine key business leaders in the U.S. aren’t in the president’s ear, suggesting that change needs to happen. The current situation is painful for Americans just as much as it’s challenging for Canadians.
MERELLA: Could we end up with bilateral agreements instead of the trilateral trade deal we have now? Would that be better or worse for Canada?
DIAMOND: It’s hard to say. The devil’s in the details — the reality is in the text. There have been discussions over the years about whether Mexico or Canada has the better standing with the U.S. to broker a one-on-one agreement. But ultimately, I believe we’re strongest as a North American trading bloc. Given the deeply integrated nature of our jobs and supply chains, especially in the automotive sector, trying to carve out Mexico and focus solely on Canada-U.S. trade would ignore those fundamental business realities.
MERELLA: Are you seeing any signs the U.S. has been negatively affected by tariffs? You mentioned Americans are feeling similar pain. What might pressure the president to give a little in these trade talks?
DIAMOND: The president has always had many voices in his ear. He’s out across the U.S. talking to business leaders and stakeholders — that was a major focus of our outreach during the first NAFTA renegotiation back in 2017-18. The idea was to reach unlikely voices who could influence the president.
We saw just yesterday that some American governors were in Canada for a conference with Premier Doug Ford and Quebec’s premier. They said their own constituents are feeling the impact of rising costs and job pressures — all linked to tariffs and supply chain issues. It’s short-sighted to place new tariffs on Canada when those inputs are required for goods made in the U.S. as well.
MERELLA: Got it. Diamond, I have to leave it there. Appreciate you joining us today. Diamond Isinger is a former special advisor on Canada-U.S. relations in the Prime Minister’s Office under Justin Trudeau.
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This BNN Bloomberg summary and transcript of the Oct. 7, 2025 interview with Diamond Isinger are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
