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Mark Carney also said his government would waive 2026 model year vehicles from Canada’s zero-emission standard and review the overall mandate, confirming a Bloomberg News report.

Canada is facing tariffs on its steel, aluminum, auto and lumber exports, but minister Dominic LeBlanc didn't say whether quota limits in those sectors are part of the negotiations. 

“We are looking, I hope, for an agreement that will put us in a better position than we are right now,” Dominic LeBlanc said Aug. 25 in a French-language radio interview.

But the government is likely to keep 25% import taxes on U.S. steel and aluminum products, as well as its tariffs on U.S. automobiles.

The two leaders talked about “trade challenges, opportunities, and shared priorities in a new economic and security relationship between Canada and the U.S.,” according to a statement.

Prime Minister Mark Carney said his government is in trade talks with the Trump administration despite recent comments from Trump suggesting a deal with Canada wasn’t a priority.

President Donald Trump said trade talks with Canada are not a focus for his administration right now, and instead of negotiating a deal, he may decide to just leave import taxes in place.

Canada’s provincial leaders urged Prime Minister Mark Carney to back new oil pipelines, electricity grids, critical mineral mines, ports and railways at a meeting June 2 meant to identify “nation-building” projects to be fast-tracked.

The Canadian government said it will allow automakers to import a number of U.S.-made cars and trucks without tariffs, as long as the companies keep manufacturing vehicles in Canada.

Canada will keep its trade retaliation in place until the U.S. lifts its own tariffs and commits to free trade, said Mark Carney, who will succeed Justin Trudeau as Canada’s prime minister.