Canada's Carney Navigates Tough Terrain in Trade Talks with Trump

Sat Jul 12 2025 14:17:13 GMT+0300 (Eastern European Summer Time)
Canada's Carney Navigates Tough Terrain in Trade Talks with Trump

New tariff threats from the US President complicate Canada’s trade negotiations amidst rising tensions.


As the Canada-US trade talks unfold, Prime Minister Mark Carney is facing scrutiny over his strategies to confront President Trump’s latest tariff threats, particularly a staggering 35% levy on Canadian goods.

The escalating situation began with Trump's unexpected announcement, creating a ripple of uncertainty as the two nations aimed to finalize a trade agreement. Carney, who initially campaigned on a fiercely confrontational approach, is now grappling with criticism following Canada's concession on a Digital Services Tax (DST) after the US threatened to terminate negotiations over it.

In the wake of this latest tariff warning, experts weigh in on whether Carney's government is effectively negotiating or backing down. Critics, including University of Brock’s Blayne Haggart, argue that the Prime Minister's trade strategy lacks coherence, while some commentators reference a perceived “chicken dance” in his handling of negotiations.

Despite the pushback, polls indicate Canada’s support for Carney remains robust, as many citizens advocate for patience in the face of Trump’s aggressive tactics. Roland Paris, a former advisor on Canada-US relations, cautions that the true impact of Carney's approach will only be clear with the final agreement's terms.

With 35% tariffs looming on August 1, Carney insists on defending Canadian industries, pledging that his government will steadfastly pursue a beneficial deal. Meanwhile, public sentiment across party lines unites against Trump’s tariffs, with Conservative leader Pierre Poilievre emphasizing support for Canada's efforts to secure favorable trade conditions.

Industry Minister Melanie Joly stressed that the government is cautious, adamantly denying that they are caving under pressure from Trump. She noted the unpredictability of the US administration complicates negotiations, echoing sentiments shared by trade experts who underscore the importance of the US consumer's role in the negotiations.

As the talks continue, Carney's handling of the situation will be closely scrutinized, and the timing of potential resolutions remains uncertain in this fraught economic landscape.

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