Canada and the U.S. edge closer to a trade deal as PM Carney signals likely tariffs ahead of the August 1 deadline set by President Trump.
Negotiations Approach Deadline
OTTAWA — Trade negotiations between Canada and the United States have entered a critical stage, with Prime Minister Mark Carney confirming Monday that the talks are “at an intense phase.” With just days remaining before the U.S. deadline of August 1, both nations are working against the clock to finalize an agreement that could shape cross-border economic relations for years.
Focus on Avoiding Steep Tariffs
The urgency follows U.S. President Donald Trump’s threat to impose a 35% tariff on select Canadian imports if no agreement is reached by the set date. While both countries are aiming to avoid an escalation in trade tensions, Carney acknowledged that a completely tariff-free deal is “improbable,” signaling that some levies are likely part of the final framework.
Location and Political Setting
Carney spoke to the media during a televised press conference in Prince Edward Island, emphasizing that Canada will only endorse a deal that aligns with national interests. The comments came just a week after his high-level meeting with Jordan’s King Abdallah II on Parliament Hill in Ottawa, reflecting Canada’s broader focus on balancing international partnerships.
Trade Impact and Economic Stakes
Canada exports approximately 75% of its goods to the U.S., making the outcome of these negotiations critical for sectors including automotive, agriculture, and energy. Carney reiterated that while tariffs may be unavoidable, their scope and scale remain negotiable. “There is a landing zone that’s possible,” he said, adding, “but we have to get there, and we’ll see what happens.”
Recent Developments Add Pressure
The stakes have been raised further following the U.S.’s recent trade deal with the European Union, which included a 15% import tariff on most EU goods. That agreement adds pressure on Canada to secure favorable terms before the looming deadline, especially given the precedent it sets for transatlantic trade negotiations.
Looking Ahead
With less than three days left, Canadian negotiators are working around the clock to secure a deal that minimizes economic disruption. Carney emphasized that while the situation is fluid, Canada remains committed to protecting its economic interests, even if it means accepting limited tariffs as part of a broader compromise.
The coming days will determine whether the two allies can strike a balance or drift toward a trade standoff with significant implications for both economies.
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