Carney Asserts Canada’s Trade Commitment at ASEAN Summit in Malaysia

KUALA LUMPUR – At the Association of Southeast Asian Nations (ASEAN) summit on October 26, 2025, Canadian Prime Minister Mark Carney emphasized Canada’s commitment to a rules-based international trade system. His remarks surfaced amid escalating tensions with the United States, where President Donald Trump threatened to impose new tariffs on Canada due to a controversial advertisement run by the Ontario government in U.S. markets.

During his speech, Carney stated, “We value a rules-based system. We respect trade agreements and the rule of law. We value the free exchange of goods, capital and ideas.” While he did not directly mention Trump or the U.S., the timing of his address was notable, coinciding with Trump’s arrival in Kuala Lumpur for a separate engagement.

Trump’s threat to raise tariffs followed his dissatisfaction with a $75 million anti-tariff advertisement that aired during the World Series, featuring clips of former president Ronald Reagan. In a post on X, Trump asserted, “Their advertisement was to be taken down, IMMEDIATELY, but they let it run last night, knowing that it was a FRAUD.” This incident led to a halt in trade discussions between the two nations.

As Carney prepared for his visit, he had downplayed expectations of a new agreement on sectoral tariffs with Trump, expressing instead his anticipation for a meeting. However, the recent developments have cast doubt on whether such a meeting will occur during their attendance at the Asia-Pacific Economic Cooperation (APEC) forum later in the week.

In his address to ASEAN leaders, Carney discussed the challenges posed by “transactional bilateral trade” and the emerging dynamics of great power rivalry. He asserted that these changes underline the necessity for reliable partnerships, positioning Canada as a steadfast ally.

Carney’s speech lasted approximately five minutes and coincided with Trump’s participation in a peace deal signing between Thailand and Cambodia, indicating the contrasting international approaches of the two leaders. Since the last direct communication on October 24, Canadian officials confirmed that Carney and Trump had not spoken.

The Prime Minister also outlined his government’s ambitious plans to double non-U.S. exports over the next decade and to significantly increase defense spending by quadrupling it within four years. Much of this investment is earmarked for cybersecurity and artificial intelligence initiatives.

During the summit, Carney highlighted Canada’s recent trade agreement with Indonesia, marking Canada’s first bilateral agreement with an ASEAN member, and expressed a commitment to pursue further trade deals with other interested nations. He emphasized an intent to finalize a comprehensive trade agreement with ASEAN as a whole by next year.

The summit also welcomed Timor-Leste as the bloc’s 11th member, marking a significant expansion for ASEAN. On the sidelines of the event, Carney held meetings with the prime ministers of Laos and Vietnam, as well as with the president of the Philippines, enhancing Canada’s diplomatic engagement in the region.

This report, originally published by The Canadian Press, underscores the ongoing complexities of global trade relations and the critical importance of multilateral cooperation for middle powers like Canada and Southeast Asian countries.