As Canada navigates tense trade relations, PM Carney is poised to protect national interests against unfavourable US tariffs.
Canada Won't Accept 'Bad Deal' on US Tariffs, Says PM Carney
Canada Won't Accept 'Bad Deal' on US Tariffs, Says PM Carney
Prime Minister Mark Carney emphasizes the importance of a fair trade agreement with the US ahead of looming tariff deadlines.
In a decisive statement, Canadian Prime Minister Mark Carney announced that Canada will "not accept a bad deal" in order to secure a trade agreement with the United States. With the looming deadline of August 1 for potential new tariffs under US President Donald Trump, Carney made it clear that Canada's priority is to secure a deal that serves the best interests of its citizens. "Our objective is not to reach a deal whatever it costs," he stated during a press conference in Ontario. If negotiations fail by the set deadline, US importers could be facing a staggering 35% tax on Canadian goods.
Historically, Canada and the US have maintained a robust trading relationship, making each other important economic partners. However, tensions have escalated in recent months as Trump has reignited tariffs following his return to the White House. The tariffs, aimed at boosting American manufacturing and job protection, have sparked significant concern among critics who warn of rising costs for American consumers.
Currently, Canada is subject to a 25% flat tariff on select goods and a more severe 50% on aluminium and steel imports. During his recent address, Carney hinted at potential actions to safeguard critical Canadian industries such as aluminium and lumber, indicating the government may introduce additional protective measures as the ramifications of US tariffs become clearer.
In light of these growing pressures, the prime minister has hinted at forthcoming support for severely impacted sectors, stating, "It will probably be the case in the next couple of months... we'll see other needs for support for the sectors that have been the most affected."
The Canadian economy heavily relies on its exports to the US, with approximately 75% of Canadian goods directed south of the border. This includes significant exports in metals, lumber, oil, automobiles, machinery, food, and pharmaceuticals. In 2024, US trade statistics indicated $350 billion in goods were exported from the US to Canada, while imports from Canada exceeded $412 billion.
Trump's tariff regime has been justified under various pretexts, including a need to address perceived unfair treatment by foreign trading partners and to pressure Canada into tackling illegal fentanyl shipments into the US, despite data revealing minuscule fentanyl seizures at the Canadian border.
While Trump has brokered several trade agreements recently with countries including the UK, Japan, and Indonesia, these deals have not eliminated the elevated tariff rates. For instance, the recent agreement with the Philippines stipulated a tariff increase to 19% from an initial 17%, even as it fell short of the 20% rate suggested earlier this month. With these shifting trade dynamics, Canada remains steadfast in its commitment to negotiate effectively and protect its economic interests.
Historically, Canada and the US have maintained a robust trading relationship, making each other important economic partners. However, tensions have escalated in recent months as Trump has reignited tariffs following his return to the White House. The tariffs, aimed at boosting American manufacturing and job protection, have sparked significant concern among critics who warn of rising costs for American consumers.
Currently, Canada is subject to a 25% flat tariff on select goods and a more severe 50% on aluminium and steel imports. During his recent address, Carney hinted at potential actions to safeguard critical Canadian industries such as aluminium and lumber, indicating the government may introduce additional protective measures as the ramifications of US tariffs become clearer.
In light of these growing pressures, the prime minister has hinted at forthcoming support for severely impacted sectors, stating, "It will probably be the case in the next couple of months... we'll see other needs for support for the sectors that have been the most affected."
The Canadian economy heavily relies on its exports to the US, with approximately 75% of Canadian goods directed south of the border. This includes significant exports in metals, lumber, oil, automobiles, machinery, food, and pharmaceuticals. In 2024, US trade statistics indicated $350 billion in goods were exported from the US to Canada, while imports from Canada exceeded $412 billion.
Trump's tariff regime has been justified under various pretexts, including a need to address perceived unfair treatment by foreign trading partners and to pressure Canada into tackling illegal fentanyl shipments into the US, despite data revealing minuscule fentanyl seizures at the Canadian border.
While Trump has brokered several trade agreements recently with countries including the UK, Japan, and Indonesia, these deals have not eliminated the elevated tariff rates. For instance, the recent agreement with the Philippines stipulated a tariff increase to 19% from an initial 17%, even as it fell short of the 20% rate suggested earlier this month. With these shifting trade dynamics, Canada remains steadfast in its commitment to negotiate effectively and protect its economic interests.
