Trump and Carney talk to the press: We will possibly start to renegotiate USMCA | Forexlive

• Canada chose a talented person
• Oval office improved with the help of gold ; )
• Houthis don’t want to fight anymore
• We will stop bombing
• We will discuss Ukraine
• We will have a very big announcement before middle east trip
• Announcement will be made Thursday, Friday or Monday before we leave.
• USMCA is still very effective.
• USMCA was a transitional step
• We’ll possibly start to renegotiate USMCA
• We will be friends with Canada
• Being 51st state would be a massive tax cut, free military. I do feel it will be much better for Canada
• Want to protect auto industry business
• We have tremendous amounts of energy.
• On sale of Canada to US, “Time will tell”
• China wants to negotiate and we will meet at the right time
• Massive amount of companies are moving into the United States
• Could have $9 trillion of investment in the United States
• The announcement over next few days not necessarily on trade
• On trade deals, were not chaotic, we are flexible.
• On India, not going to put up with high tariffs from India
• Think of US as a super luxury store.
• USMCA is fine. It’s there. It’s good.
• Some things of USMCA will have to change.
• We won’t do much business with Canada
• Dealing more with concepts right now
• They are paying tariffs and steel right now
• We dont really want cars from Canada
• At some point it won’t make economic sense for Canada to build these cars
• There is no reason for us to subsidize Canada
• We subsidize Canada $200B a year.

Carney:

• You are a transformational leader
• I have been elected to transform Canada with focus on the economy.
• History is Canada – US stronger when we work together
• Canada is not for sale and would never be for sale
• My government is commited for a step change in providing international security
• Some things on USMCA will have to change.
• This is a bigger discussion which will take time.

For what it is worth, Trump ended by saying US subsidizes Canada by $200B per year which is a little high.

The US/Canada goods deficit is more like $63.3 billion in 2024 with a trader surplus of $31.7 billion for a net deficit of about $32B.

For NATO, it is calculated that Canada owes around $20B more per year. So overall, the $200B is exaggerated.

The USDCAD has moved lower and trades to a new low for the year and looks to the 61.8% of the move up from the 2023 low. That level comes in at 1.37415.

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