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Carney Concedes Tariff-Free U.S. Trade Deal Unlikely Amid Rising Tensions
Prime Minister Mark Carney has shifted his tone on Canada’s trade negotiations with the United States, acknowledging that a tariff-free agreement is increasingly improbable under President Donald Trump’s administration.
Speaking ahead of a cabinet meeting, Carney stated there is “not a lot of evidence” that the U.S. is willing to strike deals without tariffs. This marks a departure from earlier optimism, as Canada faces the looming threat of a 35% blanket tariff on non-compliant exports starting August 1.
Carney emphasized that while Canada currently enjoys “almost free trade” under the Canada-U.S.-Mexico Agreement (CUSMA), sectoral tariffs on steel, aluminum, and autos continue to strain the economy. He reiterated the government’s commitment to protecting Canadian industries and workers, noting that negotiations will intensify in the coming weeks.
The U.S. has tied potential tariff relief to cooperation on narcotics enforcement, particularly fentanyl trafficking—a move Carney has not publicly endorsed. Meanwhile, Canadian officials are working to stabilize key sectors and prepare countermeasures if talks fail.
With the August deadline fast approaching, Carney’s remarks signal a more pragmatic approach to trade diplomacy, one that accepts tariffs as a likely fixture in future agreements.
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