Trump to announce an "earth-shattering development" alongside Canada in the next few days (not related to a trade deal)

Trump to announce an "earth-shattering development" alongside Canada in the next few days (not related to a trade deal)

President Donald Trump is set to announce an "earth-shattering development" with Canada in the coming days, according to sources close to the administration. The announcement, which is not related to the ongoing trade disputes, is expected to be significant but has not been officially confirmed. Meanwhile, tariff talks between the United States and Canada remain stalled, with no concrete solutions emerging from a recent meeting between Trump and Canadian Prime Minister Mark Carney [1].

The meeting between Trump and Carney, held at the Oval Office on Tuesday, did not yield any breakthroughs in the ongoing tariff disputes. Carney, who assumed office after the Canadian election, has vowed to challenge Trump's tariffs, which have been a point of contention between the two nations. The tariffs, which include a 25% additional tariff on imports from Canada and a 10% additional tariff on energy and potash, have led to a series of countermeasures from Canada [1].

Since the initial tariffs were announced, the United States and Canada have engaged in a series of trade measures and countermeasures. In March, Canada imposed counter-tariffs on $30 billion worth of American goods in response to the 25% tariffs on Canadian exports and 10% tariffs on energy product exports. This includes a wide range of products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and certain paper products [1].

In April, when Trump's 25% tariff on Canadian automobiles took effect, Canada imposed 25% tariffs on vehicles from the United States that did not comply with the USMCA. The 25% tariffs also extend to non-Canadian and non-Mexican content of USMCA-compliant vehicles imported into Canada from the United States [1].

Despite the ongoing tariff disputes, Canada remains a significant trading partner for the United States. In 2024, Canada was the top destination for U.S. exports and the third-largest source of U.S. imports, with around $412.7 billion worth of goods imported from Canada [1].

While the United Kingdom has announced a framework for a trade deal with the United States, the situation with Canada remains uncertain. The lack of progress in tariff talks has raised concerns among investors and financial professionals, who are closely watching the developments for potential impacts on trade and the economy.

References:
[1] https://www.wbaltv.com/article/us-canada-tariffs/64691471