Prime Minister Mark Carney said Ottawa and Washington trade talks have reached an intense phase, with the August 1 deadline for a deal fast approaching. President Donald Trump has said there will be no extensions to the Friday deadline, at which time a 35% tariff on some Canadian imports will kick in. Meanwhile, Ontario Premier Doug Ford said if there is no deal, Canada should retaliate with a dollar-for-dollar levy on American imports.
The Aug 1, 35% tariff would be applied to non-Canadian US-Mexico free trade agreement goods. Even so, along with punishing tariffs on Canadian steel and aluminum, copper and the auto sector, they will have an impact. Pharmaceuticals and lumber are also in Trump’s crosshairs. Trump has said the two countries might not reach a trade deal.
“We haven’t really had a lot of luck with Canada,” Trump said. “I think Canada could be one where they just pay tariffs. It’s not really a negotiation.”
Canada’s lead trade negotiators have been, for more than a week, downplaying the possibility of getting an agreement by Friday. Here’s Canada's US trade minister, Dominic LeBlanc.
“We’re going to continue to do the difficult work and take the time necessary until the prime minister decides that the deal that’s on the table is the best deal we can get,” LeBlanc said. “So we’ve made progress, but we have a lot of work in front of us.”
Trump announced a deal with the European Union over the weekend, a 15% tariff on EU imports. Prime Minister Mark Carney said there are differences in the trade relationship between the US and the EU, and the US and Canada, one of which is energy.
“Europe in that agreement yesterday made commitments to buy American energy. Europe needs to fully get itself off Russian energy. So they’re going to buy American energy to help them do that. America needs Canadian energy. You get Canadian electricity; the only reason they run a trade deficit with Canada in goods and commodities is because they import around four million barrels a day in Canadian energy, as well as that electricity and others,” Carney said.
Carney admits negotiations have been tough. Meanwhile, Ontario Premier Doug Ford is taking a much harder line on trade talks, as he has for the past several months. And he is calling on Ottawa to be much tougher with Trump.
“We (Canada) buy more products than Japan, China, Korea, the UK and France combined. He needs to focus on his number one customer. And a tariff on Canadians is a tax on Americans. Prices will go up. And we need to find out exactly where he stands,” Ford said. “After we get this deal, so-called deal August 1, and then we face it again February 2026 on the USMCA deal.”
Ford wants Ottawa to match US tariffs, if necessary, dollar for dollar, if a new trade deal isn’t achieved by Friday. That should also include a matching 50% tariff on US aluminum and steel. Ford said Canada needs free and fair trade with the US. He said, although he has no confidence in President Trump, he is confident that Prime Minister Carney is doing his best to get a deal.
