Canada Draws a Line in Trade Talks With President Trump
With the deadline to avoid new U.S. tariffs quickly approaching, Prime Minister Mark Carney has signaled that Canada is not willing to sign a trade deal at any cost.
Following an emergency summit with leaders from Canada’s 10 provinces and 3 territories in Huntsville, Ontario, Carney shared that a final agreement with President Donald Trump is unlikely before the August 1 deadline.
Tariff Threats Put Pressure on Negotiations
President Trump recently announced a potential 35% tariff on Canadian exports, further escalating trade tensions. This comes on top of existing tariffs from earlier this year, including:
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50% on Canadian steel and aluminum
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25% on vehicles using non-U.S. parts
Carney admitted the situation is “complex,” but emphasized that Canada will only accept a deal that serves the best interests of Canadians.
“It’s not our goal to make a deal at any cost,” Carney stated in French.
Key Officials in Washington for Last-Minute Talks
Dominic LeBlanc, Canada’s lead negotiator and cabinet minister, will be in Washington through the week in an effort to continue talks.
“We’ll use all the time we need,” said Carney as he left the summit.
Canadian Leaders Frustrated With U.S. Approach
Canadian premiers voiced frustration with what they see as unpredictable U.S. trade policies.
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Ontario Premier Doug Ford called Trump “hard to negotiate with” due to his frequent policy changes and conflicting public statements.
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Quebec Premier François Legault questioned whether Trump even knows what he wants, underlining the challenges of dealing with the U.S. administration.
Both leaders echoed the need to strengthen trade with other countries, expand interprovincial trade, and invest in major infrastructure projects to support the economy.
U.S. Ambassador’s Comments Stir Tensions
Tensions spiked when David Eby, Premier of British Columbia, responded to remarks made by Pete Hoekstra, the U.S. ambassador to Canada. Hoekstra reportedly called Canadian trade policies “mean and nasty,” citing bans on American liquor and wine in some provinces.
Eby shot back:
“If defending our economy, jobs, and sovereignty makes us ‘mean and nasty,’ most Canadians would wear that with pride.”
What’s Next for Canada-U.S. Trade?
While Carney had hoped to reach a deal by July 21, Trump’s latest threats disrupted the timeline, leaving little room for optimism. With no firm agreement in place, Canada is preparing for the possibility of tariffs starting August 1 and considering alternative trade strategies.
Key Takeaways
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Canada won’t accept a U.S. trade deal that doesn’t protect Canadian interests.
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Trump’s tariff threats include 35% on exports, adding pressure to talks.
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Canadian leaders are focused on diversifying trade and protecting domestic industries.
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Negotiations continue in Washington, but an agreement remains uncertain.
