WASHINTON – Canada's ambassador to the United States, Kirsten Hillman, reported significant progress in trade negotiations with American counterparts, despite President Donald Trump increasing tariffs on Canada to 35 percent this past Friday. Hillman, who also serves as Canada’s chief negotiator with the U.S., indicated that her discussions with Trump's administration over the last three weeks have been both professional and constructive. However, she emphasized that the optimal deal for Canada is still not available.
“We’re just not there yet,” Hillman stated while speaking to The Canadian Press. “We made progress, and we're just not there yet.” Despite the substantial tariffs announced by Trump, Hillman pointed out that there is an exemption for goods that comply with the Canada-U.S.-Mexico Agreement (CUSMA).
She suggested that, apart from Mexico, no other country would prefer its position over Canada’s. Just the day before, Trump provided Mexico with a 90-day extension for trade discussions, postponing his deadline to impose a 30 percent tariff on Mexico's non-CUSMA-compliant goods. Throughout this period, both Canadian and U.S. officials have remained relatively tight-lipped regarding the negotiations.
Hillman revealed that ongoing talks have involved critical sectors essential for economic and national security for both nations, in addition to how a strong Canada aids Trump in achieving some of his domestic objectives. “We have a unique position to work with the U.S. in compatible ways to protect ourselves against threats posed by unfairly traded products, which may be subsidized or dumped, creating an uneven playing field for our sectors,” she explained.
Discussions have also revolved around various regulatory policies that act as irritants for both countries. Trump has historically criticized Canada, particularly misrepresenting the agriculture and dairy sectors while also objecting to its defense spending. When questioned about the delay in negotiations from the Canadian side, Trump remarked that “they have to pay a fair rate.”
A White House official, speaking on background, noted that Canada has shown a lack of seriousness in its discussions regarding the removal of trade barriers. In contrast, Hillman expressed that she remains optimistic about the negotiations, acknowledging that more effort is required, particularly concerning Trump’s sectoral tariffs on steel, aluminum, and automobiles.
“The job now is to keep those discussions going and continue the progress,” she stated. Canadian officials are actively advocating for the removal of these sectoral duties in any potential agreement. U.S. Treasury Secretary Scott Bessent indicated that there might be room for negotiation concerning aluminum tariffs, as Ford trucks, which use a significant amount of aluminum, could be a point of discussion with Canada.
Currently, the United States relies heavily on aluminum imports and lacks sufficient domestic production capacity to replace what it sources from Canada. Hillman noted that aluminum prices in the U.S. have surged to 50 percent above those in the global market due to Trump’s tariffs. “There’s a very active discussion in the U.S. between American aluminum consumers and their government,” she commented.
Hillman also mentioned that Canadian Prime Minister Justin Trudeau and President Trump maintain regular communication; however, the Prime Minister has made it clear that he will only accept a deal that is advantageous for Canada. “We’ll do our best to move this along and achieve a state of stability sooner rather than later, but ultimately the priority is to secure the best deal for Canada,” Hillman concluded.
This report was originally published on August 1, 2025.
