Canada enters critical 72 hours in cross-border trade talks
Trade negotiations between Canada and the United States have entered an “intense phase,” prime minister Mark Carney stated Monday, as a looming Friday deadline for a new agreement approaches. The discussions come amidst escalating tariff threats from US president Donald Trump, who recently mused that a deal with Canada might not materialize.
Intense negotiations underway
Speaking from Prince County, PEI, prime minister Carney acknowledged the complexity of the talks. “‘Canadians don’t deserve the uncertainty that’s been thrust upon them… they want the right kind of resolution. They want a deal that makes sense for Canada,’” Carney said, emphasizing the government’s commitment to securing favourable terms.
Despite the challenging rhetoric from the US side, Carney maintained an optimistic outlook, suggesting that “‘there is a landing zone that’s possible but we have to get there.’”
Trump’s tariff stance
Trump’s recent comments have cast a shadow over the negotiations. Last week, he told reporters, “‘We haven’t really had a lot of luck with Canada,’” adding that “‘Canada could be one where there’s just a tariff, not really a negotiation.’”
Trump has threatened a 35% tariff on non-CUSMA-compliant Canadian goods by August 1, in addition to existing 50% tariffs on steel and aluminum, and 10% on energy and potash. Further levies on automobile imports, pharmaceuticals, lumber, and copper have also been threatened.
Canada’s position and outlook
Canada’s top trade negotiators, including Canada-US trade minister Dominic LeBlanc, have downplayed expectations for a swift resolution by Friday. “‘We’re going to continue to work toward the August 1 deadline,'” LeBlanc stated, “‘But all of these deadlines are with the understanding that we’ll take the time necessary to get the best deal that we think is in the interest of the Canadian economy and Canadian workers.’”
Other than the prime minister, officials such as BC premier David Eby highlighted Canada’s distinct position compared to other US trading partners, such as the European Union, which recently reached a framework deal involving a 15% tariff.
“We are a reliable partner, we are a good partner, but we also won’t get kicked around,” Eby said.
Earlier this month, the prime minister noted that Canada would most likely have to accept some tariffs. “It’s improbable that there will be deals without any tariffs at all,” he said. “But there is a question about the level, there are questions about the size of tariffs.”
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
