Canada’s annual inflation rate rose to 2.4 per cent in September, data showed Tuesday, as Prime Minister Mark Carney said Ottawa was in “intensive” talks with Washington to reduce tariffs that have impacted prices.
Carney was asked about a report in The Globe and Mail saying a trade deal with U.S. President Donald Trump in three crucial sectors — steel, aluminum, and energy — could be ready to sign within days.
“We’ll see,” Carney told reporters in Ottawa. “We’re in intensive negotiations.”
Roughly 85 per cent of cross-border trade in both directions remains tariff-free as the United States and Canada continue to adhere to CUSMA.
But Trump’s global sectoral tariffs — particularly on steel, aluminum, and autos — have hit Canada hard, forcing job losses and squeezing businesses.
Canada is a major supplier of steel and aluminum for U.S. businesses and Carney has expressed optimism about the prospects of a breakthrough in those sectors.
But he has indicated Trump remains committed to imposing tariffs on foreign-made autos, which would mark a blow to Canada given the interconnected nature of North American auto production.
Carney’s office declined additional comment on the nature of a potential deal with the U.S. that could be inked this month.
The prime minister has said that in addition to pursuing an agreement to ease sectoral tariffs, his government is focused on preserving the CUSMA, which was signed during Trump’s first term and is scheduled for review in 2026.
The September inflation rate was slightly above analyst expectations, with rising grocery prices partly driving the inflation bump.
Consumers paid four per cent more for food last month, compared to September of last year.
Food price inflation has accelerated since April, when some of Trump’s tariffs came into effect.
Canadian grocery stores have historically relied heavily on U.S. imports.
While most cross-border food trade has remained tariff-free, grocery executives have said that U.S. tariffs and Canadian countermeasures have forced some suppliers to raise prices.
