U.S. President Donald Trump has said he does not expect to reach a trade agreement with Canada by his self-imposed 1 August deadline, raising the prospect of steep new tariffs on Canadian imports.
“We haven’t really had a lot of luck with Canada,” Trump told reporters on Friday before leaving for Scotland. “I think Canada could be one where there’s just a tariff, not really a negotiation.”
The warning comes days after Canadian Prime Minister Mark Carney reiterated that his government “will not accept a bad deal” under pressure and will not rush to meet the U.S. deadline.
Canada is among several U.S. trading partners facing new tariff threats as part of Trump’s global trade strategy. If no agreement is reached, U.S. importers will pay a 35% tax on Canadian goods, though items compliant under the existing North American free trade agreement will remain exempt.
Washington has already hit Canadian exports with a 25% tariff on some goods, a 50% levy on aluminium and steel, and a 25% duty on all cars and trucks not built in the U.S. Trump insists the measures will protect U.S. manufacturing and jobs, but critics warn they could raise costs for American consumers and disrupt supply chains.
Canada’s economy, heavily reliant on the U.S. market, sends about three-quarters of its exports south of the border. The auto industry, in particular, is deeply integrated, making the impact of any new tariffs especially severe.
Talks between the two countries remain ongoing. After meetings in Washington this week, Canadian Intergovernmental Affairs Minister Dominic LeBlanc described negotiations as “productive and cordial” but acknowledged significant differences remain, adding Canada will take “the time necessary to get the best deal.”
Trump has struck trade deals with other nations, including a recent agreement with Japan, which secured a lower tariff rate of 15% in exchange for a $550 billion (£409 billion) investment in the U.S.
