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Carney says US-Canada trade deal likely to include some tariffs

July 15, 2025

Prime Minister Mark Carney has indicated that Canada may need to accept some tariffs in any future trade deal with the United States, noting the Trump administration's consistent inclusion of tariffs in trade negotiations. This comes after President Trump announced a new 35% duty on Canadian goods starting August 1, adding to existing tariffs on aluminum, steel, vehicles, and copper. While the two countries remain in a trade war that began when Trump took office in January, Canada has already imposed counter-measures, with Carney suggesting further counter-tariffs could follow if no agreement is reached.

Who is affected

  • Canadian exporters and businesses selling goods to the US
  • Canadian auto manufacturing sector
  • Canadian metals suppliers
  • US importers of Canadian goods
  • Consumers in both countries who may face higher prices
  • Industries operating under the US-Mexico-Canada Agreement (Cusma)

What action is being taken

  • Canada and the US are currently negotiating trade terms
  • The US is preparing to impose a new 35% duty on Canadian goods starting August 1
  • Canada has implemented counter-measures in response to US tariffs
  • Prime Minister Carney is considering accepting some tariffs as part of a potential trade deal
  • The US-Mexico-Canada Agreement (Cusma) continues to provide duty-free status for 91% of Canadian exports to the US

Why it matters

  • Canada sells approximately three-quarters of its goods to the US
  • The tariffs are particularly damaging to Canada's auto manufacturing and metals sectors
  • Canada's exports to the US have fallen since April
  • The ongoing trade tensions impact a critical economic relationship between neighboring countries
  • The outcome of negotiations will determine the economic conditions for cross-border trade
  • Despite tariffs, compliance with Cusma has increased

What's next

  • No explicit next steps stated in the article

Read full article from source: BBC

Carney says US-Canada trade deal likely to include some tariffs