Carney Says Canada Won't Sign a U.S. Trade Deal Without a 'Viable' Auto Sector as Ottawa Gives Stellantis 30 Days

Since Canada walked away from trade talks with Washington in August, the sides have resumed discussions, and Prime Minister Mark Carney used a Manila press conference today, Nov. 14, to say where he will not budge: autos.

"This government will not settle for a deal with the United States that is not consistent with a viable Canadian auto sector," Carney told reporters ahead of the ASEAN summit.

He called autos "one of the fundamental issues" in the negotiation and "one of the most challenging issues." Progress is being made, he said. "We're making progress. We're not there yet."

A call with Trump, Greer and Miller

Carney said he had "quite a long, substantive conversation" with President Trump this week, just before leaving for Europe and Asia. U.S. Trade Representative Jamieson Greer and White House chief of staff Stephen Miller were also on the line.

"There is the possibility of a deal, a bilateral deal," he said. "But we're not yet there."

Canada suspended talks in August after what Ottawa called last-minute U.S. demands. Washington then imposed 50% tariffs on about $20 billion in Canadian goods. Canada retaliated in September.

Trump said before the Nov. 3 midterms that the two countries were "very close." Carney has said Washington backed away from demands touching Canadian culture, French-language protections and Canada's freedom to negotiate other trade agreements. No terms of a deal have been announced.

The Stellantis fight

The auto line has a concrete corporate case behind it. Stellantis dropped plans to build the Jeep Compass at its Brampton, Ontario, plant and moved that production to Illinois. More than 2,000 Canadian workers were laid off. The company has agreed to sell the plant to Roshel, a Canadian armoured-vehicle maker.

Ottawa wants the sale stopped. Industry Minister Mélanie Joly said: "When it comes to Stellantis, our position is clear: they cannot close the plant."

The federal government committed up to C$529 million (US$370.6 million) in 2022 to help Stellantis retool its Brampton and Windsor plants for electrified vehicles. Joly accused the company of failing to honour that agreement after it left Brampton without a replacement vehicle.

Ottawa has given Stellantis 30 days to address the alleged breaches or face possible legal action to recover hundreds of millions of dollars.

Stellantis has offered to repay C$24 million (US$17 million) tied to the Brampton project. Canadian officials say it could owe substantially more.

The company says the sale would put the factory back to productive use. Roshel says the site could eventually support more than 2,000 jobs and has made promises to former plant employees.

Carney said Ottawa and Ontario are working on an "aggressive package" to persuade Stellantis to reconsider. He discussed it with Premier Doug Ford last weekend. "Make no mistake, the expectation is that Stellantis fully respects its engagements to the workers and to Canada," he said.

Pressure to take a deal

Carney acknowledged the political pull the other way. "Lots of people think that we should just go and take whatever deal," he said.

Conservative leader Pierre Poilievre was one of them ahead of the midterms. "It's time for Mr. Carney to put the big talk in the past and deliver real results," he said, arguing Canadians could not afford to wait.

The U.S. election has complicated the choice. Tariffs on Canadian goods became a midterm issue, with Democrats blaming them for higher prices and pledging to challenge them. Canada now has to decide whether to accept a deal that lowers some tariffs but leaves others in place, or hold out while Congress prepares to take up the issue.

Robert Bothwell, a University of Toronto historian, cautioned before the election against reading too much into the improved tone between the two leaders. He compared the thaw to "5 minutes of variable sunshine. Rain later."

A deal could reduce some tariffs on key sectors, including steel and aluminum.

Asia as the hedge

Carney also announced that Canada has substantially concluded free-trade negotiations with ASEAN, a bloc of nearly 700 million people. Talks with the Philippines are complete, and that agreement covers more than 90% of tariff lines.

The Canadian government estimates the ASEAN deal could add nearly C$2 billion (US$1.4 billion) to the economy and create almost 14,000 jobs, mainly in agriculture and manufacturing. It projects Canadian exports to the Philippines could triple by 2035. Both agreements are expected to be signed in 2027.

The ASEAN summit begins Sunday. The 30-day clock on Stellantis is the nearest hard deadline, and Ottawa has not said what legal action it would take if the company does not respond.