U.S. President Donald Trump has declared he expects no trade deal with Canada by his August 1 deadline, signaling potential 35% tariffs on Canadian imports.
“We haven’t had luck with Canada,” Trump stated before departing for Scotland, suggesting tariffs may replace negotiations.
Canadian Prime Minister Mark Carney earlier vowed not to accept a “bad deal” under U.S. pressure, emphasizing Canada won’t rush negotiations. Despite ongoing talks described as “productive and cordial” by Canadian Intergovernmental Affairs Minister Dominic LeBlanc, significant disagreements persist.
Canada faces escalating U.S. trade barriers, including existing 25% tariffs on select goods, 50% levies on aluminum and steel, and 25% duties on non-U.S.-built vehicles. New tariffs could severely impact Canada’s economy, which sends 75% of exports to the U.S., particularly disrupting the integrated auto industry.
Trump recently secured a deal with Japan, lowering tariffs to 15% in exchange for $550 billion in U.S. investments. Critics warn U.S. tariffs risk raising consumer costs and destabilizing supply chains.
