Canada's PM Carney on U.S. Tariffs: "It's a Negotiation"

Mark Carney, Prime Minister of Canada, discussed the possibility of U.S. tariffs in a potential trade deal, but declined to provide specifics. He also hinted at the possibility of retaliation if tariffs are imposed. Carney stated that the negotiations are ongoing and that Canada will "see" what the outcome is.

Prime Minister Mark Carney of Canada has hinted at the possibility of U.S. tariffs in a potential trade deal, but declined to provide specific details. Speaking ahead of a cabinet meeting in Ottawa, Carney stated that "there is not a lot of evidence right now" that the Trump administration would be willing to completely give up on tariffs [1]. This sentiment was echoed by Carney in a separate interview, where he emphasized that all of Trump's trade negotiations have thus far included tariffs [2].

The prime minister did not specify whether Canada would accept the levies in any deal with the U.S. However, he indicated that Canada would only sign an agreement "that's in Canada's best interest" [1]. Carney also suggested that Canada might impose further counter-tariffs if Ottawa and Washington could not strike a deal [1].

In addition to the latest threatened 35% tariff on Canadian goods, which is set to increase from the current 25% starting on August 1, Trump has imposed a global 50% tariff on aluminum and steel imports, and a 25% tariff on all cars and trucks not built in the U.S. [1]. These tariffs have been particularly damaging to Canadian sectors such as auto manufacturing and metal supply.

Despite the ongoing trade war, much of the cross-border trade between the U.S., Canada, and Mexico remains exempt from additional levies under the US-Mexico-Canada Agreement (CUSMA) [1]. According to a recent report from the Royal Bank of Canada, around 91% of Canadian exports to the U.S. crossed the border duty-free [1].

Carney's comments come as the U.S. and Canada have one of the world's biggest trading relationships, with nearly $1 trillion of trade between the two nations annually [2]. The prime minister also emphasized that the discussions with the U.S. are ongoing and that Canada will "see" what the outcome is [1].

References:
[1] https://www.bbc.com/news/articles/c0q82qqxegno
[2] https://www.marketscreener.com/quote/index/S-P-GSCI-ALUMINUM-INDEX-46869176/news/Canada-PM-Carney-Signals-U-S-Tariffs-May-Be-Here-to-Stay-Update-50515311/