The dealmaker meets his match in a central banker
US President Donald Trump employs a dealmaking strategy reminiscent of a political strategist, creating urgency and extracting concessions. Canadian Prime Minister Mark Carney, however, approaches trade negotiations as a central banker would, resisting Trump's deadlines, maintaining open channels and reducing Canada's dependency on the US.
Trump's tariff strategy thrives on uncertainty, potentially prompting hasty decisions, but Carney has refused to accept Trump's timetable. When trade talks collapsed in August, Canada retaliated with tariffs, while Trump imposed tariffs on Canadian exports. Carney's central banking background informs his approach, as he avoids making dramatic moves to eliminate risk and instead aims to make the system less dependent on the US.
About 72% of Canadian exports go to the US, a dependence Carney hopes to reduce by doubling non-US trade over the next decade. Carney continues to signal openness to future negotiations with the US, preserving optionality and influencing the other side's incentives without permanently closing the door to an agreement.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
