The Intelligence from The Economist Man of steel, and aluminium: Carney talks trade with Trump
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Oct 7, 2025 
Hal Hodson, America’s editor at The Economist, shares insights on Prime Minister Mark Carney's attempts to negotiate tariff relief with President Trump to stabilize Canada’s economy, along with long-term strategies to diversify trade partners. Avantika Chilkoti, Global business correspondent, dives into the booming phenomenon of live-stream shopping, revealing its addictive potential, driven by engaging formats that mimic traditional TV shopping. The discussion also touches on China's role in shaping social commerce trends and regulatory battles over consumer protection.
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Carney's Two-Track Trade Strategy
- Mark Carney aims to win short-term tariff relief from the US while executing a long-term plan to reduce Canada’s dependence on the US market.
- He wants to liberalize internal trade, build infrastructure, and expand ties with the EU and CPTPP to diversify markets.
Unlocking Domestic Trade For Global Leverage
- Removing internal barriers between Canadian provinces could boost GDP by roughly a quarter-trillion dollars according to Carney.
- He plans to bridge the EU and CPTPP trade blocs to create a larger free-trade coalition and counter China and US trade practices.
Immediate Pain Versus Long-Term Plans
- The immediate tariff shock is tangible: two-thirds of manufacturers report pain and GDP fell 1.6% annualized in Q2 2025.
- Carney needs quick relief from Washington to stabilize the economy even as he pursues longer reforms.