Trudeau Seeks to Revive UK-Canada Trade Talks Amid U.S. Tariff Pressure

As Donald Trump’s tariff threats continue to cast uncertainty over Canada-U.S. trade, Prime Minister Justin Trudeau is looking to restart trade negotiations with the United Kingdom, hoping to diversify Canada’s economic ties.

Push to Restart Stalled Talks

Ralph Goodale, Canada’s High Commissioner to the U.K., has called on London to return to the negotiating table after bilateral trade talks collapsed last year. The breakdown stemmed from Canada’s push for greater access to the British market for hormone-treated beef, which led to retaliatory restrictions on U.K. cheese and automotive exports to Canada.

With Trump’s tariff pause lasting only 30 days, Goodale says there is now a pressing need to move beyond Canada’s reliance on the U.S. market.

“We now have both a great opportunity and a great reason to work really hard at trade diversification,” Goodale told POLITICO.

While acknowledging that U.K. Prime Minister Keir Starmer’s government has new priorities, Goodale remains hopeful about progress in key sectors such as AI, quantum computing, and tech innovation.

CPTPP Roadblock & Election Uncertainty

The stalled UK-Canada trade talks have also delayed Canada’s ratification of Britain’s entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Complicating matters further, Canada’s parliament is currently prorogued as Trudeau’s Liberal Party selects a new leader ahead of the country’s mandatory general election later this year. The race is led by former Bank of England Governor Mark Carney and ex-Finance Minister Chrystia Freeland.

Despite these obstacles, Goodale insists that Canada’s current trade agreement with the U.K. remains strong and could serve as a foundation for future negotiations.

“In the meantime, we do have a trade agreement in place that is pretty darn good,” he noted.

With uncertainty surrounding Canada’s trade future with the U.S., Trudeau’s pivot towards reviving UK trade talks reflects a broader strategy to secure new economic partnerships before the next federal election.