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U.S. and Canada might not reach trade deal, Trump says

U.S. President Donald Trump says his country may not reach a new trade deal with Canada and could simply impose more or higher tariffs on its northern neighbour — something he's threatening to do in one week's time. 

"We haven't really had a lot of luck with Canada," Trump told reporters Friday outside the White House in response to a question about the state of tariff talks with U.S. trading partners. 

"I think Canada could be one where there's just a tariff, not really a negotiation," he said, before departing on a trip to Scotland. It's the first time Trump has publicly spoken about the state of talks with Canada in nearly two weeks.

Trump sent a letter to Prime Minister Mark Carney on July 10, threatening to hit Canada with 35 per cent tariffs on Aug. 1. 

That rate would apply to Canadian exports currently being tariffed at 25 per cent, under Trump's emergency powers, citing the national security threat from fentanyl trafficking. Most Canadian goods are exempt from that tariff, provided they meet the North American content rules of the Canada-U.S.-Mexico Agreement (CUSMA).

Separately, Canadian steel and aluminum are facing a 50 per cent tariff that the U.S. has imposed on such imports from all countries, while the U.S. tariff on Canadian energy and potash is set at 10 per cent.

Trump made his comments after a reporter asked what he expects between now and next Friday, the date set for imposing new or higher tariffs on many of the U.S.'s biggest trading partners. 

"Aug. 1 is going to come and we will have most of our deals finished, if not all," Trump said. He spoke of progress in talks with Australia, the European Union and China, but singled out Canada for criticism.

"We don't have a deal with Canada; we haven't been focused on them," Trump said. 

Trump's comments are the latest nail in the coffin of Canada's prospects for a deal by the U.S. president's deadline. 

On Thursday, during a visit to Washington, Canada's top trade negotiators downplayed the likelihood they'll get an agreement by Aug. 1.

"We're going to continue to work toward the Aug. 1 deadline," said Canada-U.S. Trade Minister Dominic LeBlanc. "But all of these deadlines are with the understanding that we'll take the time necessary to get the best deal that we think is in the interest of the Canadian economy and Canadian workers." 

Earlier this week, Carney had told a news conference that his objective is "not to reach a deal whatever it costs."

After Carney met with Canada's premiers, Nova Scotia's Tim Houston said the prime minister isn't dead set on signing a deal by the deadline. 

The last time Trump spoke publicly about trade talks with Canada was in a July 14 interview with the BBC's Gary O'Donoghue.

"We're negotiating with Canada right now and we'll see how that all works out. I think it's going to work out very well," Trump said at the time.

This is from the 25 July 2025 edition of CBC News.

Topic(s)

U.S. Tariffs and Canadian Retaliatory Surtax
International Trade and Border Management

Information source

Canadian News Channel
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