Canada's PM adamant on fair US trade deal

Canadian Prime Minister Mark Carney stated that Canada will not agree to a trade deal with the US at any cost as a deadline of August 1 approaches for US President Donald Trump to impose new tariffs.

Carney emphasized that their goal is to secure a deal that benefits Canadians, not just any deal. If no agreement is reached by the deadline, US importers buying goods from Canada will face a 35% tax.

Despite being major trading partners, tensions arose between the two countries after Trump implemented tariffs earlier this year, aiming to boost American manufacturing. The tariffs have caused disruptions in the global economy and concerns over increased prices for US consumers.

In response to the tariffs, Carney mentioned the possibility of protective measures for key Canadian industries like aluminium and lumber. Canada also plans to impose higher tariffs on steel imports in retaliation.

Canada heavily relies on exports to the US, including metals, lumber, oil, vehicles, machinery, food, and pharmaceuticals. In 2024, the US exported nearly $350 billion in goods to Canada and imported over $412 billion from Canada.

Trump has imposed various tariffs on specific products and countries, alleging unfair treatment of the US by its trading partners. He has also cited the need to pressure neighbors to prevent illegal shipments of fentanyl into the US, despite data showing minimal fentanyl seizures at the Canadian border.

While Trump has secured trade deals with countries like the UK, Japan, and Indonesia, these agreements have maintained higher tariff rates. Recently, a deal with the Philippines was announced, imposing a 19% tariff on goods from the country.