As Canada faces possible new U.S. tariffs by August 1, a former White House official urges Ottawa to project strength in ongoing trade negotiations with Washington.
Tensions Escalate Ahead of Tariff Deadline
Canada is facing mounting pressure as the United States edges closer to imposing steep new tariffs on Canadian exports. The potential move, expected by August 1, could see 35% tariffs applied to Canadian goods—unless a new trade agreement is reached with the Biden administration.
Meanwhile, the U.S. has finalized trade frameworks with the European Union, Japan, Vietnam, and the U.K., increasing pressure on Ottawa to secure its own deal.
Trade Gap Widens as U.S. Signs With Other Allies
On Sunday, U.S. President Donald Trump and European Commission President Ursula von der Leyen announced a mutual trade deal that applies a 15% tariff on most goods traded between the two economies. This comes after similar agreements with other strategic partners, leaving Canada increasingly isolated in trade negotiations.
Without a deal, Canadian exports—including steel, aluminum, copper, and automobiles—could be hit hard, potentially damaging key sectors of the economy.
Expert Warns Canada Not to Show Weakness
Former White House official Larry Haas spoke with Canadian media Sunday, warning that Ottawa must project strength if it hopes to navigate the tough talks ahead.
“President Trump respects strength as opposed to weakness,” Haas said. “Canada needs to make clear to the United States that it’s not going to take just any deal.”
Negotiation Timeline Still Uncertain
Though Trump has previously walked back tariff deadlines, Haas cautions that there are no guarantees this time.
“If we approach August 1 and these tariffs are looming, and the stock market all of a sudden becomes shaky, I could envision another extension,” Haas noted.
But with no deal yet in place, Canadian officials remain on alert for sudden policy shifts.
Canada’s Strategic Response in Motion
In anticipation of a worsening trade environment, Ottawa has taken steps to strengthen its negotiation position. These include canceling a proposed digital services tax, enhancing border inspections, and reviewing its retaliatory tariff options.
Despite the diplomatic strain, Canada continues to signal its readiness to negotiate, though not at any cost.
What’s at Stake for Canada
A tariff escalation could severely impact Canadian exporters and manufacturers, particularly in B.C., Ontario, and Quebec, where cross-border trade is integral to local economies. Economists warn that rising tariffs may also raise consumer prices and strain business supply chains.
Haas concluded that while tariffs may satisfy short-term political goals, they’re not a formula for long-term economic growth. Still, he admitted, “No one is going to talk President Trump out of his fondness for tariffs.”
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