"Carney Warns: Canada May Face Tariffs in New U.S. Trade Deal Talks!"
OTTAWA | July 15, 2025 —
Canadian Prime Minister Mark Carney has hinted that the country may have to accept some U.S. tariffs as part of a revised trade deal with Washington.
Speaking to reporters in Ottawa ahead of a cabinet meeting, Carney acknowledged that tariffs are likely to remain a part of any future trade agreement with the United States, especially under the ongoing leadership of President Donald Trump.
“There’s not a lot of evidence right now that the U.S. will walk away from these levies completely,” Carney said, as reported by CBC News.
🔥 What's the Issue?
Last week, Trump announced a new 35% tariff on Canadian goods, set to take effect August 1 — a sharp rise from the current 25% rate, which already includes limited exemptions.
This latest move comes amid a long-running U.S.-Canada trade war that began when Trump first took office. The dispute has seen the U.S. roll out aggressive duties on steel, aluminum, copper, cars, and trucks, while Canada has retaliated with its own countermeasures.
🚗🔩 Why It Matters
Canada exports roughly 75% of its goods to the U.S., making it highly vulnerable to American trade policies. The Canadian economy, especially sectors like auto manufacturing, metals, and raw materials, is feeling the pressure.
Trump’s new tariffs also include a 50% global duty on steel and aluminum and an upcoming 50% tariff on copper, expected next month.
🇨🇦 Carney’s Stand: No Deal Without Fair Terms
Although Carney has not confirmed if Canada will accept the tariffs in the final deal, he was firm about protecting national interests.
“We’ll only sign a deal that’s in Canada’s best interest,” he said at the G7 Summit in June.
He also signaled further counter-tariffs if an agreement can’t be reached.
🤝 What About the USMCA (Cusma)?
Despite rising tensions, the US-Mexico-Canada Agreement (USMCA) — also known as CUSMA — is still in effect, offering duty-free passage for many goods. According to Royal Bank of Canada, 91% of Canadian exports to the U.S. remain duty-free, even as trade volumes have dipped since April.
🗣️ Trump’s Take: “It’ll Work Out Very Well”
In an interview with the BBC, President Trump confirmed negotiations are active and sounded optimistic:
“We’re negotiating with Canada right now. It’s going to work out very well.”
📌 Final Word:
As trade talks heat up, Canadians and businesses across the border are bracing for what’s next. With high-stakes negotiations underway, all eyes are on Ottawa and Washington to see if a fair, balanced deal can be struck — or if economic tensions will escalate further.