Canadian trade minister on tariff rates and negotiations with the U.S.

(CBS, KYMA/KECY) - Canadian Trade Minister Dominic LeBlanc spoke with Margaret Brennan on Face the Nation Sunday about tariff rates being placed on Canada.

According to Brennan, even though talks are ongoing, Minister LeBlanc left Washington D.C. "without a deal" and with a 35% tariff on goods.

This prompted her to ask LeBlanc how much of a setback was President Donald Trump's "decision to do that" while he was at the table, to which LeBlanc said:

"So we were obviously disappointed by that decision. We believe there's a great deal of common ground between the United States and Canada in terms of building two strong economies that work well together. That's been the history of the 40-year Free Trade Agreement that goes back to President Reagan. We were pleased the United States is respecting the terms of the USMCA agreement. That's vital, we think, to the cost of living and affordability, certainly in the United States, it's true in Canada, as well. So, we're going to continue to do the work. We left, always, with a better understanding of the American concerns in the trading relationship. Ambassador Greer, Secretary Lutnick, engaged with us in constructive, cordial conversations. So we're prepared to stick around and do the work needed. We think, Ms. Brennan, that the economies of both countries are strengthened when we do things together, the trading relationship between Canada and the United States is unlike other partners. One description, without which I thought was very apt; we don't sell things to each other as much as we build things together. And that's why it's difficult in this relationship when so much is integrated. But we remain very optimistic."

Brennan brought up her previous interview with Jamieson Greer, U.S. Trade Representative, who said Canada retaliated to the initial tariffs back in April, when Prime Minister Trudeau was in office, even though they have a new government in place.

This led Brennan to ask LeBlanc why doesn't Canada make a concession and pull back if that was the issse, and LeBlanc said:

"Prime Minister Carney, our new prime minister, has, we think, built a very business-like, respectful relationship with President Trump. We think that's obviously very important to Canada, and we think to the United States. We're dealing with, take, for example, the steel sector in Canada. It's a strategic importance to national security in Canada, as it is for President Trump and the American economy. We now have a situation where there's a 50% tariff. We're the biggest steel export market for the United States. We have a 25% tariff. There's a 50% tariff when we want to sell something into the United States. So, effectively, we're blocked from doing that. But the national security interest of Canada requires that we have a viable steel and aluminum sector, and my conversations with Secretary Lutnick and others are that therein lies an example, where if we do the right work together, we have, Ms. Brennan, the toughest rules of any country dealing with Chinese dumping into Canada. We have melt and pour tracing, so that products coming from other countries with Chinese steel can't be dumped into the Canadian market. So, we're looking and advancing ideas where we can do that work with the United States, at the same time, ensuring that our economy continues to have sectors vital to the economic future of Canada. But, that's not in contradiction to President Trump's national security objectives in the United States, of course."

During the interview, Brennan and LeBlanc talked about negotiations with the U.S.

Brennan said American automakers, like GM, Ford and Stellantis, say the tariffs are hurting their profits, with the 50% metal tariffs, which uses aluminum from Canada, seeing an impact in the U.S.

This prompted Brennan to ask LeBlanc if he sees "room for maneuver" on them, and if the U.S. is willing to negotiate with Canada on the tariffs, to which LeBlanc said, "We hope so," while adding:

"Canadian aluminum companies massively supply the American market. And by putting a 50% tariff on aluminum from Canada, you've increased the price of a whole series of goods. The automobile sector, again, is an example where there's been deep integration. We're the biggest customer of U.S. made automobiles. Heavily, heavily importing into Canada light and heavy-duty trucks. 50% of the cars that we finish in Canada and sell to the United States are made up of American parts. So, therein lies a perfect example where, instead of tariffing one another, or President Trump for his national security reasons, under his Section 232, tariffs, wants to have a strong domestic steel, aluminum automobile sector. Well, so does Canada. And we understand and respect totally the President's view in terms of the national security interest. In fact, we share it, and what we've said to our American counterparts is, how can we structure the right agreement, where we can both continue to supply one another in a reliable, cost-effective way that preserves jobs essential to the American economy, but the same thing is true, obviously in Canada as well."

Brennan followed up by asking if Trump and Prime Minister Carney plan to speak, as well ask ask if the tensions are high and if he feels he's negotiating with the other side in good faith, and LeBlanc said:

"Sure, we do. Of course we do. As I say, the conversations have been informative, constructive, and cordial. I would expect the Prime Minister will have a conversation with the President over the next number of days. That's certainly my plan, again with Secretary Lutnick, recognizing that we think there is an option of striking a deal that will bring down some of these tariffs, provide greater certainty to investment. We passed, in Canada, our version of the President's One Big, Beautiful Bill. It's called the One Canadian Economy Act, which we think will unlock up to $500 billion of investment in Canada for things like pipelines, port infrastructure, mines, all of which offer huge opportunities to American businesses as well. So, we think there's a great deal to work on together."

To watch more of Brennan's interview with LeBlanc, click here.