OTTAWA: Prime Minister Mark Carney has stated that a comprehensive trade agreement with the United States without any tariffs appears unlikely. Speaking to the media ahead of a cabinet meeting on Tuesday, Carney indicated that most nations might have to accept the baseline tariffs set by the U.S. However, he also emphasized that Canada has a strong position to secure what he described as ‘effectively free trade’ with its southern neighbor.
Carney announced that trade discussions with the U.S. are expected to intensify in the coming weeks. The Prime Minister underscored the significant shifts in the global trade landscape and reiterated his government’s focus on strengthening the Canadian economy. He also stressed the importance of ensuring stability for sectors particularly affected by the Trump administration’s tariffs. In a related development, Carney is scheduled to meet with Canada’s provincial premiers in Huntsville next week to discuss the ongoing trade challenges.
The relationship between the two long-standing allies has been strained for months by escalating trade tensions. The U.S. has imposed substantial tariffs on Canadian products, prompting Canada to implement retaliatory duties. Following the G7 summit in Kananaskis last month, Carney had stated that he reached an understanding with U.S. President Donald Trump to finalize a trade agreement by July 21. However, last week, Trump sent a letter to Carney warning of a 35 percent tariff on Canadian products effective August 1. This new threat has led Canada to adjust its deadline for a trade deal to August 1.
