Canadians are bracing for more tariffs as Trump's early-August deadline looms
As the August 1 deadline nears for a potential 35% tariff imposition by US president Donald Trump, prime minister Mark Carney affirmed on Tuesday that the Canadian government would “only accept the best deal for Canada” in ongoing trade negotiations with the United States. Speaking from a summit in Huntsville, Ont., where he met with premiers and territorial leaders, Carney underscored a pivot towards bolstering Canada’s domestic economy and diversifying international trade partners.
With less than a week remaining before Trump’s threatened tariffs could take effect, Carney expressed a cautious outlook on reaching a breakthrough by the specified date. “We’ll agree to a deal if there’s one on the table that is in the best interest of Canadians,” he stated, later adding in French that “it’s not our objective to have an agreement at any cost.”
This sentiment was echoed by provincial leaders, including Nova Scotia premier Tim Houston, who asserted that constraining negotiations to a specific deadline could compromise the quality of the agreement. Trade minister Dominic LeBlanc is slated to continue discussions in Washington throughout the week.
Strengthening domestic foundations
The prime minister emphasized Canada’s resolve to build a stronger internal economy, particularly in light of the unpredictable US trade climate. “What we collectively, alternatively, can most control is building a stronger economy, moving from alliance to resilience and division to unity,” Carney told media. This strategy includes supporting industries significantly impacted by US tariffs, such as lumber, steel, aluminum, and automobiles.
The discussions in Huntsville also centred on reducing interprovincial trade barriers, with Carney commending the various free trade agreements already signed between provinces. Ontario premier Doug Ford, hosting the summit, highlighted the need for a united Canadian front, stating, “We need to make sure we match tariff by tariff, dollar for dollar, and hit him [Trump] back as hard as we possibly can.”
Diversifying global horizons
Beyond domestic efforts, Carney revealed a significant push to expand Canada’s trade relationships globally. He noted that his “phone is ringing off the hook” with calls from other nations eager to engage with Canada, citing over 80 bilateral meetings with world leaders since becoming prime minister. This proactive approach to trade diversification aims to insulate Canada’s economy from the volatility of its relationship with the US.
While the path to a comprehensive trade deal with the United States remains uncertain, Canada’s leaders appear unified in their commitment to securing an advantageous future for the country, whether through a robust US agreement or a stronger, more diversified global presence.
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