**Canada's Carney Faces Tough Choices Amid Trump Tariff Threats**

Sun Jul 13 2025 04:17:16 GMT+0300 (Eastern European Summer Time)
**Canada's Carney Faces Tough Choices Amid Trump Tariff Threats**

Amid escalating trade tensions, Canadian Prime Minister Mark Carney grapples with President Trump's potential tariffs, raising questions about his negotiation strategy.


As trade talks with the US unfold, Carney's ability to deliver on fair agreements for Canada while dealing with Trump's aggressive tactics remains under scrutiny.

In an unexpected twist in the ongoing trade saga between Canada and the United States, President Trump has threatened to impose a steep 35% tariff on Canadian goods starting next month. This latest development complicates negotiations currently underway to establish a new trade deal. Critics are calling into question whether Prime Minister Mark Carney is prepared to effectively confront Trump and fulfill his campaign promise of ensuring fair trade practices for Canada.

Carney, who emerged victorious in April’s general election by adopting a bold stance—encapsulated by the ice hockey metaphor of keeping his “elbows up”—is now facing skepticism regarding his administration's handling of escalating trade pressures from the US. Recent concessions to Trump, such as the withdrawal of a proposed Digital Services Tax aimed at tech giants, have raised concerns that these actions may indicate a weakening resolve on Carney's part.

Analysts like Robyn Urback expressed discontent with Carney's approach, describing it as a “chicken dance,” while Brock University political science professor Blayne Haggart remarked that the strategy lacks coherence, especially regarding the pursuit of a comprehensive trade and security agreement. Haggart contended that walking back the Digital Services Tax has yielded “less than nothing” in the negotiations.

Despite the criticisms, Carney retains substantial public support as polls indicate confidence in his administration. Former adviser Roland Paris emphasized the premature nature of categorizing recent moves as concessions, noting the significance of the future trade agreement. However, he added that if Carney appears to have capitulated without securing advantageous terms, it could bear political ramifications.

Notably, Canada's commitment to bolster border security with a funding pledge of C$1.3 billion and appointing a "fentanyl czar" showcases an attempt to address Trump's concerns about drug trafficking. Nevertheless, the new tariff threat looms large, especially following Trump's decision to double tariffs on Canadian steel and aluminum last month without significant Canadian counteractions.

In response to the tariff threat, Carney stated that Canada remains committed to defending its workforce and businesses throughout ongoing negotiations. The previously established deadline for a trade agreement has been pushed to next month, allowing for a more extended negotiation period.

A silver lining for Canada is that these new tariffs are not expected to affect goods covered under the US-Mexico-Canada free trade agreement for the time being. Domestically, there appears to be a unified front against Trump's tariffs, with political leaders across party lines expressing their willingness to secure optimal trade conditions for Canada.

Experts were quick to remind observers that the economic dynamics suggest some leverage remains with Canada, as American consumers would ultimately bear the cost of any tariffs imposed. Fen Hampson, a scholar in international affairs, underscored the significance of American industries that rely on Canadian imports, further complicating Trump's negotiating strategy.

As questions loom over Carney's decision-making amid Trump's unpredictable tactics, Canada's Industry Minister Melanie Joly affirmed that the government does not disclose negotiation strategies publicly. She conveyed confidence that Canada is indeed confronting the challenges posed by the current US administration, indicating that the situation continues to evolve as both countries navigate these turbulent waters.

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