Trump Doubts Trade Deal with Canada; August 1 Deadline Looms

Economy

Trump Doubts Trade Deal with Canada; August 1 Deadline Looms

4 months ago

News sources:

REUTERS

SCMP

BBC

INDIATIMES

Trump Doubts Trade Deal with Canada; August 1 Deadline Looms

Credited from: REUTERS

Trump indicates no expectation of a trade deal with Canada before the August 1 deadline.
Canadian Prime Minister Carney emphasizes Canada won’t accept a poor agreement.
A potential 35% tariff looms for Canadian goods if negotiations fail.

U.S. President Donald Trump stated he does not expect to finalize a trade deal with Canada by the looming August 1 deadline, suggesting that Canada may simply face unilateral tariffs instead. "We haven't really had a lot of luck with Canada," Trump remarked as he departed for Scotland, adding, "I think Canada could be one where there’s just a tariff, not really a negotiation," according to Reuters, SCMP, and BBC.

The Canadian government, led by Prime Minister Mark Carney, has made clear its reluctance to rush into a poor agreement. Carney stated, "Canada will not accept a bad deal," which reflects growing concerns about the U.S. imposing a 35% tariff on Canadian goods if negotiations collapse, as previously threatened by Trump, according to India Times and Reuters.

Current tariffs imposed by the U.S. include a 25% tax on specific Canadian goods, a 50% tariff on aluminum and steel, and a 25% duty on non-U.S.-built vehicles, impacting Canada significantly as it exports about 75% of its products to the U.S. Talks have made some progress, but both sides are still facing substantial challenges ahead of the deadline, as established during meetings in Washington, according to BBC and SCMP.