On October 7, 2025, the political and economic relationship between the United States and Canada took center stage in Washington, D.C., as President Donald Trump welcomed Canadian Prime Minister Mark Carney to the Oval Office. The meeting, which unfolded against a backdrop of rising economic anxiety and international tensions, addressed not only the future of tariffs and trade between two of the world’s largest economies but also the broader implications of Trump’s economic policies for Americans—particularly Black Americans—and pressing global issues like the ongoing conflict in the Middle East.
Trump, ever the showman, described the U.S.-Canada relationship as one of “mutual love” and “natural conflict.” According to reporting from TNND, he elaborated, “Trade negotiations between the countries [are] complicated, more complicated than maybe any other agreement we have on trade. It’s a natural conflict.” The president’s comments came as Canada remained the only G7 nation yet to finalize a new trade deal with the United States following the so-called Liberation Day tariffs announced in April 2025.
Prime Minister Carney, prior to his second visit with Trump, made clear his intentions: “I’m visiting with Trump to keep building a new economic and security relationship with the United States—one that empowers our workers and businesses with greater certainty and new opportunities.” But the negotiations have been anything but smooth. The U.S. currently maintains a 35% levy on Canadian imports, along with steep 50% tariffs on steel and aluminum. However, goods covered under the United States-Mexico-Canada Agreement (USMCA) are exempt from these duties, a crucial caveat for businesses on both sides of the border.
Carney explained the sticking points: “There are areas where we compete, and it’s in those areas where we have to come to an agreement that works, but there are more areas where we are stronger together, and that’s what we’re focused on. And we’re going to get the right deal, right deal for America, right deal, obviously, from my perspective, for Canada.” Trump, for his part, struck an optimistic note, predicting that Canada “is going to walk away very happy.”
Despite the tough talk, the economic reality is nuanced. In August, Canada dropped its 25% retaliatory tariffs on most U.S. goods after the two countries failed to negotiate a deal before Trump’s self-imposed August 1 deadline. As Carney pointed out, “As a result, the actual U.S. average tariff rate on Canadian goods is 5.6% and remains the lowest among all its trading partners, and more than 85% of Canada-U.S. trade is now tariff-free.” Still, the unresolved disputes over cars and steel have left many industries in limbo, waiting for clarity and stability.
While the leaders wrangled over trade, American households—especially Black Americans—have been feeling the sting of economic uncertainty. According to an opinion piece published in The Hill by Angela Hanks and Jeremy Edwards of The Century Foundation, Black workers have been particularly vulnerable to the consequences of Trump’s economic agenda. The authors recount how, in 2016, Trump famously asked Black voters, “What do you have to lose by trying something new like Trump?” At the time, he won just 8% of the Black vote. By 2020, that figure had edged up to 12%. In 2024, faced with rising costs and disappointment in the Democratic party, more Black voters took a chance on Trump.
During Trump’s first term, Black unemployment hit a record low, and the poverty rate for African Americans reached its lowest point in history. But the picture has changed dramatically since then. As Hanks and Edwards note, “Unemployment is on the rise again, particularly among Black workers who are often last hired, first fired, and are thus more vulnerable to economic shocks like the one Trump is causing.” In Michigan, the Black unemployment rate has soared to 10%—a figure that, if it applied to the broader population, would be considered a full-blown crisis.
The cost-of-living crisis has hit Black Americans especially hard. Citing data from The Century Foundation, 61% of all Americans feel worse off financially due to Trump’s economic policies, with a staggering 48% of Black Americans dipping into savings to make ends meet. The reliance on credit is also higher, with 41% of Black Americans paying bills with credit cards. The rise of Buy Now, Pay Later services is another symptom of the times—usage has doubled in the past year, with Black people as the most frequent users. “About 60 percent of people using Buy Now, Pay Later already have subprime credit scores—and they’re mostly stacking this debt on top of credit cards,” said Julie Margetta Morgan, president of The Century Foundation, on the Bloomberg Odd Lots podcast.
These trends point to a simmering financial crisis in many Black households. For a population already more likely to have lower credit scores and higher interest rates, the risks are mounting. Trump’s budget law is set to raise health care premiums and slash Medicaid by over $900 million, with nearly 20% of Medicaid enrollees being Black. Cuts to food assistance, school funding, and student loan programs loom large, threatening generational setbacks in health, education, and wealth for Black communities.
Beyond the numbers, the Trump administration’s rollback of diversity, equity, and inclusion initiatives has eroded antidiscrimination protections in both public and private sectors. The administration recently rescinded guidance meant to address race- and disability-based discrimination in school discipline, and companies have followed suit, reducing opportunities for Black workers.
As the nation grapples with these domestic challenges, international concerns remain at the forefront. Trump and Carney also discussed the “possibility” of peace in the Middle East, marking the second anniversary of the Hamas attacks on Israel on October 7, 2023. That attack saw Hamas terrorists storm Israel, killing around 1,200 people and taking 251 hostages. Today, 48 hostages remain in Gaza, with about 20 believed to still be alive. Trump referenced his 20-point peace plan and ongoing mediation efforts involving the U.S., Qatar, and Egypt, expressing optimism about a breakthrough.
The meeting between Trump and Carney thus encapsulated a moment of high stakes and high tension—where international diplomacy, trade policy, and the everyday struggles of ordinary Americans all converged. For Black Americans, the question Trump once posed—“What do you have to lose?”—now has a painfully clear answer, as the economic and social risks of current policies become ever more apparent. Meanwhile, the outcome of U.S.-Canada trade talks and the fragile hope for peace in the Middle East remain uncertain, leaving many to wonder what the future holds.
The events of October 7, 2025, served as a stark reminder that the decisions made in the Oval Office ripple far beyond the White House, shaping the lives of millions at home and abroad in ways both visible and unseen.