U.S. President Donald Trump has cast doubt on the likelihood of reaching a trade agreement with Canada, just days ahead of an August 1 deadline he set for negotiations to conclude. Speaking to reporters before departing for a trip to Scotland on Friday, Trump said, “We haven’t really had a lot of luck with Canada. I think Canada could be one where there’s just a tariff, not really a negotiation.”
The remarks signal a hardening stance by the U.S. president amid ongoing efforts to renegotiate trade arrangements with key partners. Trump has threatened to impose a 35% import tax on Canadian goods if a new agreement is not reached by the deadline. However, goods already compliant under the current North American Free Trade Agreement (NAFTA) would not be subject to the new levy.
The U.S. has already imposed sweeping tariffs on Canadian imports, including a 25% duty on cars and trucks not manufactured in the United States, and separate tariffs of 50% on aluminium and steel. Trump has defended the measures as necessary to protect American industries and jobs, although critics warn the moves risk inflating consumer prices and disrupting supply chains.
Canada, which exports nearly 75% of its goods to the U.S., stands to suffer significantly from escalating trade tensions, particularly its closely linked automotive sector.
Canadian Prime Minister Mark Carney has pushed back against pressure to strike a quick deal, stating earlier this week that Canada “will not accept a bad deal” or be rushed into an agreement. Canadian officials have emphasised a cautious approach, stressing the importance of securing favourable terms rather than meeting artificial deadlines.
After a recent two-day visit to Washington, Intergovernmental Affairs Minister Dominic LeBlanc described the negotiations as “productive” and “cordial,” but warned that “negotiators have a lot of work” ahead.
“We’ll take the time necessary to get the best deal,” LeBlanc said.
The tone marks a contrast with Trump’s more optimistic comments just last week, when he told the BBC he believed a deal with Canada would “work out very well.”
Trump’s global trade agenda has seen him announce new agreements with other countries, including Japan, which will reportedly benefit from reduced tariffs of 15% in exchange for a promised $550 billion investment in the United States.
As talks with Canada remain unresolved, pressure is mounting on both sides to find common ground or face the economic consequences of an escalating trade standoff.
