On Friday, President Donald Trump signaled that the U.S. may abandon trade negotiations with Canada, suggesting tariffs—not a deal—may be the outcome.
What Happened: Speaking to reporters ahead of his trip to Scotland, 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," reported BBC.
The comments follow his imposition of a strict Aug. 1 deadline for Canada to reach a new agreement under his broader global tariff strategy.
Trump warned that if no deal is reached, a 35% tariff would apply to imports from Canada—unless goods fall under the existing North American Free Trade Agreement.
He has already levied tariffs of 25% on certain Canadian goods, 50% on aluminum and steel, and 25% on vehicles not built in the U.S.
Why It's Important: Canadian Prime Minister Mark Carney previously said Canada "will not accept a bad deal" or be rushed into an agreement.
On Thursday, Canadian intergovernmental affairs minister Dominic LeBlanc said talks in Washington were "productive" but stressed that negotiators "have a lot of work" ahead, the report added.
Canada exports about 75% of its goods to the U.S., and its auto industry is tightly linked with American supply chains. Trump's tariffs could significantly disrupt trade and raise prices for U.S. consumers.
While Trump remains optimistic about deals with other nations—citing a new agreement with Japan in exchange for a $550 billion investment—his hardline approach with Canada risks escalating trade tensions with a key ally and economic partner.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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