The head of the Canadian Manufacturers & Exporters group says it’s “good news” to hear that U.S. President Donald Trump and Prime Minister Mark Carney have recently said they have spoken on the phone regarding trade between Canada and the United States.
Dennis Darby, CEO and president of the country’s biggest trade and industry association, expressed his optimism about the progress in negotiations.
“The talks broke off pretty abruptly back in August... and so I think that’s encouraging for manufacturers across Canada who’ve been bearing the brunt of the tariffs,” he said in an interview with CTV News Channel on Monday.
In an X post on Sunday, Carney said he had a “good conversation” with Trump on Saturday related to a potential Canada-U.S. trade agreement. Trump told reporters Sunday that they had a “concept of a very good deal with Canada,” and both countries are “very close” to reaching an agreement.
“So, it’s good news to understand that they’re back at the table... this is now the beginning or the rebeginning of a process. And if so, that would be good for Canadians and good for Americans too,” Darby said.
U.S. Commerce Secretary Howard Lutnick is pushing both countries to re-engage on trade talks centred around tariffs that apply to steel, aluminum, lumber and autos, sources told CTV News. Tariffs and cost of living are the major issues in key Senate races in the U.S. midterm elections on Tuesday, putting intensified pressure on Trump.
Darby said the tariffs imposed on a wide range of goods from paper to food products after the breakdown of talks in August have been “really devastating” to small- and medium-sized businesses across Canada.
“So, what we’re seeing is a prolonged attenuation of our exports, and while it hurts Canadians and Canadian businesses and workers across the country, we know what’s also affecting American workers and businesses. The tariffs are extremely unpopular in those states that trade with Canada, where they’ve seen inflation, where they’ve seen difficulty getting parts,” he said.
Darby said the tariffs hurt both countries because they’re “inflationary.”
“They disrupt supply chains, and we’re seeing it in both Canada and the U.S.,” he said.
With files from CTV News’ Vassy Kapelos, Stephanie Ha, Devika Desai and Aarjavee Raaj
