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Carney says Canada won't settle for a 'bad deal' on US tariffs

July 23, 2025

Canadian Prime Minister Mark Carney has firmly stated that Canada will not accept an unfavorable trade deal with the United States as the August 1 deadline approaches, after which President Trump will impose new 35% tariffs on Canadian imports. The two nations, significant trading partners, are in a standoff following Trump's return to office and implementation of sweeping tariffs, including 25% on certain Canadian goods and 50% on aluminum and steel. Carney indicated potential protective measures for key industries like aluminum and lumber while suggesting additional support may be needed for sectors most affected by U.S. tariffs.

Who is affected

  • Canadian exporters, particularly in the aluminum and lumber industries
  • U.S. importers purchasing Canadian goods
  • U.S. consumers who may face higher prices
  • Canadian sectors dependent on U.S. trade
  • Both nations' economies, as they are major trading partners

What action is being taken

  • Canada is pursuing a trade deal that serves Canadian interests while refusing to accept unfavorable terms
  • Prime Minister Carney is considering protective measures for aluminum and lumber companies
  • Canada has already implemented counter-measures including higher tariffs on steel imports
  • The U.S. is maintaining its current tariffs (25% on certain Canadian goods and 50% on aluminum and steel)
  • Carney is indicating additional support may be provided to the most affected sectors

Why it matters

  • Canada sells about three-quarters of its goods to the U.S., making this trade relationship critical
  • The bilateral trade is massive, with the U.S. exporting nearly $350 billion to Canada and importing more than $412 billion in 2024
  • Key Canadian industries like metals, lumber, oil, automotive, machinery, food, and pharmaceuticals depend on U.S. trade
  • Trump's tariffs are disrupting the global economy and could increase prices for U.S. consumers
  • The outcome will impact the economic relationship between two of the world's largest trading partners

What's next

  • No explicit next steps stated in the article

Read full article from source: BBC