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Shadow of Trump's trade war follows Carney to Malaysia

Shadow of Trump's trade war follows Carney to Malaysia

CBC
Saturday, October 25, 2025 09:16:22 AM UTC

Prime Minister Mark Carney is due to arrive in Malaysia on Saturday in search of trade opportunities with the Association of Southeast Asian Nations (ASEAN).

But the question on everyone’s mind is whether he’ll get any facetime with the U.S. president, Donald Trump, who is expected to arrive at the same gathering on Sunday.

Trump scrapped trade talks with Canada late Thursday, saying he was outraged by an Ontario government ad running in the States that uses pro-free trade remarks by then-president Ronald Reagan. Trump slammed the ad as "FAKE" and announced "ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED."

Ontario Premier Doug Ford said Friday he was suspending the ad in the hopes negotiations would resume on Monday. The Prime Minister’s Office says it had no indication if, or when, negotiations would restart.

Prior to leaving Ottawa for Kuala Lumpur, Carney gave a muted response to the president’s outburst, saying discussions had been moving forward in specific sectors, such as steel, aluminum and energy..

“We stand ready to pick up on that progress and build on that progress when the Americans are ready to have those discussions because it will be for the benefit of workers in the United States, workers in Canada and families in both our countries,” the prime minister said.

Whether he gets to deliver that message to Trump in Malaysia remains to be seen.

A senior federal official, speaking on background during the day-long flight, said at the moment bilateral discussions with leading ASEAN countries have been scheduled.

The main focus will be getting the Canada-ASEAN free trade agreement “over the line” and ready to sign next year.

“I think we are coming to this region because the countries that make up ASEAN are some of the fastest growing economies in the world,” said the official.

“It's a very dynamic region and I think it's one that we want to see Canadian exporters have greater access to and we want  to demonstrate our partnerships with them.”

Carney has said publicly he’s making it a priority to seek out places where there’s opportunity to drive economic growth for Canadian businesses.

Most observers have said Canada must be prepared for incremental wins rather than grand outcomes at ASEAN.

Negotiations toward the ASEAN free trade deal have been complex, said the official. Different ASEAN members have different levels of economic development and different regulatory frameworks.

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