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Trump, Canada’s Carney affirm friendship in warm Oval Office exchange

Donald Trump softened his pitch to make Canada the 51st state as Mark Carney said he saw opportunities for the two countries to deepen their partnership on security.

Canadian Prime Minister Mark Carney and US President Donald Trump at a meeting in the Oval Office. Picture: Adrian Wyld/The Canadian Press via AP
Canadian Prime Minister Mark Carney and US President Donald Trump at a meeting in the Oval Office. Picture: Adrian Wyld/The Canadian Press via AP

Canadian Prime Minister Mark Carney has told Donald Trump his country will never be for sale at their first face-to-face meeting at the White House following his historic election win on April 28 where he won a come-from-behind victory on a platform of standing up to the US President.

While Mr Carney praised the US President as a “transformational” leader, the two men disagreed over Mr Trump’s push for the country to become the 51st state of America in their Oval Office meeting on Tuesday local time.

Mr Carney used the encounter to stress that, like Mr Trump, he had been elected on a platform to “transform Canada” and signalled that he would redefine the nation’s economic and security relationship with the US.

He was also hopeful of harnessing greater co-operation with Washington, arguing both nations were stronger when they worked together as partners. This was a key signal given Mr Carney had repeatedly warned that Canada’s old economic and security relationship with the United States was “over.”

The US President also said his top priority was ensuring “friendship” with Ottawa – a more conciliatory message than his treatment of Justin Trudeau, Mr Carney’s predecessor. Yet Mr Trump also informed his Canadian counterpart there was “no reason for us (America) to be subsidising Canada”.

Donald Trump greets Mark Carney at the White House. Picture: AP /Evan Vucci
Donald Trump greets Mark Carney at the White House. Picture: AP /Evan Vucci

Mr Trump said he was having a “very friendly” conversation with Mr Carney, but used the meeting to make clear that America was rebalancing its relationship with its northern neighbour.

“We don’t really want cars from Canada. And we put tariffs on cars from Canada. And at a certain point it won’t make economic sense for Canada to build those cars,” he said. “And we don’t want steel from Canada ’cause we are making our own steel. We really don’t Canadian steel and we don’t want Canadian aluminium and various other things because we want to be able to do it ourselves.”

He said it was hard to justify subsidising Canada “to the tune of maybe $200bn a year.”

“We protect Canada military. And we always will. That’s not a money thing. But it’s not fair,” he said.

Making the case for Canada becoming part of the United States, Mr Trump said it would deliver a “massive tax cut for Canadians” and a “free military.” He said there would be a “lot of advantages” and this would be a “wonderful marriage.”

While he clarified the issue would not be topic of discussion in his meeting, Mr Trump stressed this was “not necessarily a one day deal” and that Canadians would need to make this decision “over a period of time.”

However, Mr Carney pushed back, telling the US President that “Canadians’ view on this is not going to change – on the 51st state.”

“As you know from real estate, there are some places that are never for sale,” Mr Carney said. “We are sitting in one right now.”

“And having met with the owners of Canada over the course of the campaign over the last several months. It’s not for sale. It won’t be for sale – ever,” he said. “But the opportunity is in the partnership and what we can build together.”

While Mr Trump said Washington would maintain its friendship with Ottawa, he urged Mr Carney to “never say never” on Canada becoming the 51st state.

“I’ve had many, many things that were not ‘doable.’ And they ended up being ‘doable,’” he said. “We’ll see. Over time, we’ll see what happens.”

On trade, Mr Trump provided conflicting signals on the future of the USMCA (United States-Mexico-Canada Agreement) which he negotiated when last in office as a replacement to NAFTA which he slammed as “the worst trade deal in the history of our country – probably in the history of the world.”

While Mr Trump said he would not walk away from the USMCA, he described it on Tuesday as a “transitional deal” and that he was no longer sure if it was “necessary anymore.”

He later suggested that “subtle changes” could be made to it, but stressed that he and Mr Carney were dealing “more with concepts” at the present moment.

The US President said there was nothing Mr Carney could tell him that would cause him to lift his tariffs on Canada, declaring “that’s the way it is.”

“They are paying a tariff on cars and steel and aluminium,” he said.

Mr Trump also stated explicitly that he did not like Mr Carney’s predecessor, Justin Trudeau, as well as another “person who worked for him (Mr Trudeau).”

Mr Carney said the USMCA was a “basis for a broader negotiation” but acknowledged that “some things about it are going to have to change.”

America, Canada and Mexico are due to review the performance of the USMCA and decide whether to renew the agreement by the middle of next year.

Taking to his Truth Social platform shortly before the meeting, Mr Trump sought to set the tone of his relationship with the new Canadian leader.

“I very much want to work with him (Carney), but cannot understand one simple TRUTH — Why is America subsidising Canada by $200 Billion Dollars a year, in addition to giving them FREE Military Protection, and many other things?” the President said.

“We don’t need their Cars, we don’t need their Energy, we don’t need their Lumber, we don’t need ANYTHING they have, other than their friendship, which hopefully we will always maintain. They, on the other hand, need EVERYTHING from us!”

Mr Trump said this would most likely be his “only question of consequence.”

Read related topics:Donald Trump
Joe Kelly
Joe KellyWashington correspondent

Joe Kelly is The Australian's Washington correspondent, covering news and politics from the US capital. He is an experienced political reporter, having previously been the masthead's National Affairs Editor and Canberra bureau chief, having joined the parliamentary press gallery in 2010.

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Original URL: https://www.theaustralian.com.au/world/why-is-america-subsidising-canada-donald-trump-mark-carney-hold-highstakes-meeting/news-story/0319f49fd6d81056a2781cd4634be499