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Carney Rejects U.S. Preconditions for USMCA Talks

The prime minister signals a drawn-out review focused on winning relief from U.S. tariffs.

Overview

  • Carney, who spoke Thursday in Ottawa, said the United States will not set preconditions and called the 50% steel and aluminum levies and auto tariffs violations of the trade deal.
  • He rejected reports of an American “entry fee” to start negotiations and said Canada will not offer new concessions beyond scrapping the digital services tax and ending retaliatory duties already taken.
  • U.S. Trade Representative Jamieson Greer, testifying Wednesday to Congress, pressed for changes to Canadian practices, pushed tougher rules of origin, and warned of possible enforcement over provincial bans on U.S. alcohol.
  • Most provinces have pulled U.S. liquor from shelves in response to tariffs, and Ontario’s premier said sales will resume only when tariffs end, a stance U.S. industry says cut booze exports to Canada by 70% in December.
  • Under USMCA rules, the July 1 review can trigger a 16‑year extension, fresh talks, or annual reviews, and Canada’s chief negotiator says discussions are likely to run past that date with any country able to withdraw on six months’ notice.