Trump, Carney faceoff in Oval Office leaves gaping differences on tariffs, 51st state

WASHINGTON (AP) — U.S. President Donald Trump and Canadian Prime Minister Mark Carney faced off in the Oval Office on Tuesday and showed no signs of retreating from their gaping differences in an ongoing trade war that has shattered decades of trust between the two countries.

The two kept it civil, but as for Trump’s calls to make Canada the 51st state, Carney insisted his nation was “not for sale” and Trump shot back, “time will tell.”

Asked by a reporter if there was anything Carney could tell him to lift his tariffs of as much as 25% on Canada, Trump bluntly said: “No.”

The U.S. president added for emphasis, “Just the way it is.”

Carney acknowledged that no bit of rhetoric on tariffs would be enough to sway Trump, saying that “this is a bigger discussion."

“There are much bigger forces involved,” the Canadian leader continued. “And this will take some time and some discussions. And that's why we're here, to have those discussions."

The meeting between the two leaders showcased the full spectrum of Trump's unique mix of aggression, hospitality and stubbornness.

Shortly before Carney's arrival, Trump insulted Canada by posting on social media that the United States didn't need “ANYTHING” from its northern neighbor, only to then turn on the charm and praise Carney's election win in person before showing his obstinance on matters of policy substance.

Carney won the job of prime minister by promising to confront the increased aggression shown by Trump, even as he has preserved the calm demeanor of an economist who has led the central banks of both Canada and the United Kingdom.

At times, Carney struggled to interject his views and raised his hand to talk as Trump held forth at length and veered between topics, touching on California Democratic Gov. Gavin Newsom, Carney’s predecessor, Justin Trudeau, and teasing a “great” upcoming announcement that's “not necessarily on trade.”

Trump offended Canada's sense of pride and friendship by saying he wants to make Canada the 51st U.S. state and levying steep tariffs against an essential partner in the manufacturing of autos and the supply of oil, electricity and other goods. The outrage provoked by Trump enabled Carney’s Liberal Party to score a stunning comeback victory last month as the trade war and attacks on Canadian sovereignty have outraged voters.

Trump said the two would not discuss making Canada part of the U.S., even as he insisted the idea would lead to lower taxes for Canadians.

“It’s not for sale,” Carney said. “It won’t be for sale. Ever. But the opportunity is in the partnership and what we can build together.”

Trump persisted by saying that the United States did not want to buy autos from Canada, even if the vehicles were also assembled in America. The U.S. leader insisted that the $63 billion trade deficit in goods — which he inflated to $200 billion — was a subsidy that needed to come an end.

The meeting never devolved into the outburst that the public saw in Trump's meeting with Ukrainian President Volodymyr Zelenskyy, who was berated by the U.S. president and his team for not being sufficiently deferential. Nor did it have the ease of Trump's sit down with the United Kingdom's Prime Minister Keir Starmer, who invited Trump for a visit provided by King Charles III.

Carney later described his conversation with Trump as “wide ranging” and “constructive,” telling reporters that the prospect is there for positive negotiations but there would be “zigs and zags.” Carney said he stressed the value that Canadian companies and factories created for U.S. automakers while stressing that it was unfair to assume one meeting could resolve any differences.

“I wouldn’t have expected white smoke coming out of this meeting,” Carney said after the Tuesday meeting, referencing the signal that a new pope has been selected.

Carney said that he privately asked Trump to stop calling Canada the 51st state during their meeting. But when pressed on how Trump responded, the Canadian prime minister said: “He’s the president. He’s his own person.”

Trump was later asked if he would give Carney the same “governor” nickname that he had put on Trudeau. The nickname was a slight meant to imply that Canada's leader would eventually be just one of many U.S. governors.

“As far as calling him Gov. Carney, no, I haven’t done that yet, and maybe I won’t,” Trump said. “I did have a lot of fun with Trudeau. But I think this is, this is a big step. It’s a good step up for Canada.”

Trump added that the meeting with Carney had been “great” and that he thought the ongoing relationship would be “strong.”

A senior Canadian government official said the president asked Carney his perspective on a variety of foreign policy issues including Iran, Russia, Ukraine and China. The official, who spoke on condition of anonymity as they were not authorized to speak publicly about the matter, said Trump was looking forward to the G-7 meeting in Alberta, Canada.

The stakes of the meeting were high and the messages beforehand mixed. Trump told reporters on Monday that he wasn't quite sure why Carney was visiting.

“I’m not sure what he wants to see me about,” Trump said. “But I guess he wants to make a deal.”

U.S. Commerce Secretary Howard Lutnick further stoked doubts about their interest in repairing the relationship with Canada in a Monday interview on Fox Business Network's “Kudlow” show.

Asked if the U.S. could make a deal with Canada, Lutnick called the country a “socialist regime” that has been “basically feeding off America." Lutnick said Tuesday's meeting would be “fascinating.”

Carney, at a Friday news conference ahead of his trip, said the talks would focus on immediate trade pressures and the broader economic and national security relationships. He said his “government would fight to get the best deal for Canada” and “take all the time necessary” to do so, even as Canada pursues a parallel set of talks to deepen relations with other allies and lessen its commitments with the U.S.

Trump has maintained that the U.S. doesn’t need anything from Canada. He is actively going after a Canadian auto sector built largely by U.S. companies, saying, “They’re stopping work in Mexico, and they’re stopping work in Canada, and they’re all moving here.” He also said the U.S. doesn’t need Canada’s energy — though nearly one-fourth of the oil that the U.S. consumes daily comes from the province of Alberta.

The president has also disparaged Canada's military commitments despite a partnership that ranges from the beaches of Normandy in World War II to remote stretches of Afghanistan. He said on Tuesday with Carney that the U.S. would continue to provide national security support to Canada.

Trump has imposed 25% tariffs on steel and aluminum and tariffs on other products outside the United States-Mexico-Canada Agreement, in some cases ostensibly to address relatively low volumes of fentanyl intercepted at the northern border. That has jeopardized a closely entwined trade relationship as Canada sees an increasing need to build relations with the European Union and other nations.

Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border each day. About 60% of U.S. crude oil imports are from Canada, and 85% of U.S. electricity imports are from Canada.

Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security. Canada is one of the most trade-dependent countries in the world, and 77% of Canada’s exports go to the U.S.