Canadian Prime Minister: Energy and critical minerals are not bargaining chips in trade talks—how will this affect small business supply chains?

On May 6, 2026, Canadian Prime Minister Mark Carney dropped a 'non-explosive bomb' in an interview with The Canadian Press from his Parliament Hill office—Canada will not use energy and critical minerals as bargaining chips in the upcoming CUSMA renegotiation. In other words: even if U.S. tariffs are still hurting Canada's economy, Canada won't threaten with oil, natural gas, lithium, or nickel.

That sounds diplomatic, but the Canadian government isn't unified internally. On the same day, Natural Resources Minister Tim Hodgson said something different at a Toronto business event—'Canada's energy and natural resources are our strongest card in the CUSMA renegotiation.' One says it's not a bargaining chip, the other says it's the strongest card—this public disagreement itself is more worth paying attention to for Chinese small business owners than any single statement.

What are Canada and the U.S. actually negotiating?

CUSMA (USMCA) is the free trade framework between the three North American countries, with annual trade exceeding $1.5 trillion. In 2026, the agreement enters a periodic review phase, and the negotiation window is opening.

The US position is clear. US Trade Representative Jamieson Greer recently told visiting Canadian political and business figures in Washington that Canada should not try to use energy and natural resources as bargaining chips. At the same time, Greer said the Trump administration wants to cooperate with Canada on energy and critical mineral development for 'mutual benefit.'

But the word 'partnership' sounds friendly, while the real meaning is: the U.S. wants Canada’s resources, but doesn’t want Canada to use them as leverage.

What else did Carney say?

In this rare series of interviews (Carney also spoke with CBC News and French-language newspaper La Presse around the same time), it comes roughly one year after he won the election.

He specifically highlighted Canada's auto sector—an industry 'incredibly' integrated with the U.S.—as facing the risk of being 'torn apart' by American tariffs. This isn't hyperbole. Ontario's auto parts supply chain is deeply embedded in the U.S. market, and many small and medium-sized businesses run by entrepreneurs sit on this chain—from metalworking and plastic injection molding to logistics and transportation.

Carney also shared insights from dealing with Trump over the past year: 'He's a tough negotiator. He has very strong views on what he wants, so it's important to find ways to communicate what Canada wants and expects—with both respect and directness.'

Additionally, Carney mentioned two newly established federal agencies: one to accelerate major project approvals, and another for military procurement. He said these measures will ultimately 'generate real returns'—for SMEs in infrastructure, energy services, and equipment supply, this means new government procurement opportunities may be opening up.

What does this mean for Chinese-Canadian small businesses?

Industry	Direct Impact	Suggested Focus
Auto parts/manufacturing	U.S. tariffs are still hurting the auto industry; Carney says the sector risks being 'torn apart'.	Assess export dependency, consider domestic alternative clients
Metalworking / Raw Materials	Canada has launched anti-dumping and countervailing investigations on steel shelving from China (April 20)—trade friction isn't limited to US-Canada	Monitor anti-dumping rates and assess cost impact
Energy services/equipment supply	Accelerated approval of major projects may bring new orders	Watch for federal infrastructure and energy project tenders
Logistics / Cross-Border Transportation	The CUSMA framework is likely to remain; cross-border trade won't be disrupted	Short-term risk is manageable, long-term focus on agreement modification details
Mining Services	Critical mineral export contracts are legally protected and won’t be held hostage	Stable supply chains for lithium, nickel, rare earths, and other minerals

Internal divisions in the Carney government—a signal worth watching

An interesting detail: While Carney said energy won't be used as leverage, his Natural Resources Minister said elsewhere that energy is 'the strongest card.' Such public inconsistency is uncommon in Canadian politics.

Possible reasons: As Prime Minister, Carney needs to maintain a 'responsible national image' in public, but Hodgson's comments are closer to the negotiating team's actual thinking. For Chinese business owners, a more pragmatic approach is: don't take government public statements as final—the real game happens at the negotiating table. And the table's outcome will directly affect your raw material costs, export orders, and supply chain stability.

CUSMA Outlook: Most content will be retained

In the interview, Carney gave a relatively optimistic assessment: most of the trade agreement will be retained during renewal. His exact words were: 'Much of it will be retained. Some things are going to have to change but we're looking to make sure they change in a way that's in Canada's interest.'

In other words: the framework won't change drastically, but details will be adjusted, and Canada will push for favorable adjustments. For Chinese SMEs in the North American supply chain, this at least means the rules won't suddenly flip.

Tariffs are still in place, what now?

At the end of the day, what Chinese-Canadian small business owners care about most isn't geopolitics—it's real costs. US tariffs haven't disappeared, and the auto industry is especially vulnerable. While the Canadian government maintains a moderate tone in trade negotiations, it's also issuing refunds through the RTRI tariff relief program ($450 million) to affected importers.

If your business involves cross-border trade, there are three things worth doing now: First, figure out if your imported goods are affected by tariffs; second, confirm whether you qualify for an RTRI refund; third, evaluate if there are domestic alternative suppliers to reduce reliance on the U.S.

In uncertain times, financing is your moat

The direction of trade negotiations is uncertain, and tariffs may escalate further. In an uncertain environment, businesses with cash and financing channels will outlast those without.

Canada's government-guaranteed loan programs — like CSBFP (up to $1.15M government-backed), BDC small business loans, and Futurpreneur youth startup loans — are actually easier to get during economic volatility, as the government loosens credit conditions to support the economy.