U.S. President Donald Trump has expressed doubt that a new trade agreement with Canada can be reached by the August 1 deadline he imposed, suggesting he may resort to tariffs instead of a negotiated deal.
“We haven’t really had a lot of luck with Canada,” Trump told reporters on Friday. “I think Canada could be one where there’s just a tariff, not really a negotiation.”
The president’s comments follow a statement from Canadian Prime Minister Justin Trudeau earlier this week, who affirmed that his country “will not accept a bad deal” or be rushed into an agreement.
If no deal is finalized by August 1, Trump has threatened a 35% tax on Canadian goods imported into the U.S. However, this levy would not apply to products that are compliant under the existing North American free trade agreement.
These negotiations are taking place against a backdrop of existing U.S. tariffs, including a 25% tax on certain Canadian products and significant duties on steel and aluminum imports. The Trump administration argues these measures are necessary to protect American jobs and boost domestic manufacturing, though critics warn they could disrupt the global economy and lead to higher prices for U.S. consumers.
The potential impact on Canada is substantial, as the nation sends approximately three-quarters of its exports to the United States. The two countries’ auto industries are also deeply integrated, making the effects of new tariffs particularly significant.
Trump’s latest remarks represent a shift in tone from just a week prior, when he told the BBC he was optimistic a deal could be reached.
Canadian officials have maintained a cautious outlook. Following a visit to Washington on Thursday, Intergovernmental Affairs Minister Dominic LeBlanc described the ongoing talks as “productive” and “cordial” but emphasized that negotiators “have a lot of work” ahead and that Canada will take “the time necessary to get the best deal.”
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