Sir Keir Starmer has held talks with Justin Trudeau amid growing concerns over trade relations between the UK and Canada, as both nations brace for the potential impact of US tariffs.
The conversation between the British Prime Minister and his Canadian counterpart took place on Wednesday, with speculation mounting that Mr Trudeau is looking to revive stalled trade negotiations.
The UK and Canada suspended trade talks in January 2024 after failing to reach an agreement on key issues, particularly regarding beef and cheese imports. However, recent global economic pressures—including the possibility of 25% US tariffs on Canadian imports—have reignited discussions on strengthening trade ties.
A renewed focus on trade and collaboration
A Downing Street spokesperson confirmed that the two leaders reflected on the “close and historic relationship” between the UK and Canada during their call.
“From global security to clean energy and growth, they agreed on the importance of shared values between the two nations,” the spokesperson said.
Sir Keir reportedly told Mr Trudeau that he “welcomed an international conversation on the importance of trade and collaboration”, hinting at a possible return to negotiations.
US tariffs and their potential impact
The urgency of the discussions follows the Trump administration’s announcement over the weekend of new 25% tariffs on Canadian imports, a move that could have significant economic consequences for Canada.
Although the US has agreed to delay implementing the tariffs for a month, the uncertainty has placed pressure on Canada and its key trading partners, including the UK, to reassess their economic strategies.
US President Donald Trump also waded into UK trade relations, stating on Monday that Britain was “out of line”, though he expressed optimism that a deal could be “worked out.”
UK-Canada trade relations worth £26 billion
Despite the stalled negotiations, the UK and Canada maintain a strong trading relationship worth £26 billion annually.
In their discussion, Sir Keir and Mr Trudeau explored ways to “go further to support growth” and deliver economic benefits for both nations.
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They also underlined their commitment to Ukraine amid ongoing geopolitical tensions and reaffirmed their shared focus on stabilising the political transition process in Syria.
Trudeau’s political future and Canada’s next steps
The conversation between the two leaders comes as Justin Trudeau prepares to step down as Canada’s prime minister. He is set to leave office in March once the Liberal Party elects a new leader.
His departure raises questions about whether a new Canadian leader will continue to pursue stronger trade relations with the UK or take a different approach to economic negotiations.
What happens next?
While there is no confirmation yet on whether formal trade talks will resume, Sir Keir’s emphasis on international collaboration signals that the UK may be open to renegotiating terms with Canada.
With the potential US tariffs looming, both nations may find it in their best interest to rebuild their economic partnership, ensuring stability in uncertain times.
As the global trade landscape continues to shift, the UK and Canada will likely remain close allies, balancing their individual interests while working towards common economic goals.
