Trump says US-Canada trade deal unlikely soon; Carney won't accept a `bad deal'

"We haven't really had a lot of luck with Canada," Trump said.
Mark Carney
Mark CarneyOfficial X handle
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US President Donald Trump has said he does not expect to reach a trade deal with Canada, after setting a deadline of August 1 for the country to conclude an agreement.

"We haven't really had a lot of luck with Canada," Trump told reporters ahead of his trip to Scotland on Friday. "I think Canada could be one where there's just a tariff, not really a negotiation."

Canada not ready for a bad deal

His remarks follow comments from Canadian Prime Minister Mark Carney earlier this week, indicating that Canada "will not accept a bad deal" or rush into an agreement.

Canada is among several countries given an August 1 deadline by Trump as part of his global tariff strategy and his efforts to renegotiate trade deals with key US partners.

Trump has said that US importers purchasing goods from Canada will face a 35 percent tax if no agreement is reached by the August 1 deadline.

However, that levy will not apply to goods that meet the terms of the existing North American Free Trade Agreement (NAFTA) between Canada, the US and Mexico.

A blanket 25% on Canada goods

The US president has already imposed a blanket 25 percent tariff on imports of certain Canadian goods, along with a 50 percent tariff on aluminium and steel imports and a 25 percent tariff on all cars and trucks not built in the US.

Trump has argued that these measures will strengthen American manufacturing and protect domestic jobs.

The tariffs have disrupted the global economy and drawn criticism from analysts, who warn that the moves could drive up costs for US consumers.

Canada sends around three-quarters of its exports to the US, and its automotive industry is deeply integrated with that of its southern neighbour—making the potential impact of tariffs particularly severe.

Intense trade talks

The two countries have been engaged in intense trade and security negotiations since Carney assumed office in May.

Recently, Trump told the BBC he was optimistic that a deal could be reached with Canada. "I think it's going to work out very well," he said during an interview on July 15

However, Canadian officials have recently downplayed the chances of a breakthrough in the near future.

Following a two-day visit to Washington, Intergovernmental Affairs Minister Dominic LeBlanc told reporters on Thursday that negotiators still "have a lot of work" ahead of them.

He described the ongoing talks as "productive" and "cordial", but emphasised that Canada would take "the time necessary to get the best deal".

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