Trump says US may not reach trade deal with Canada

July 25, 2025

U.S. President Donald Trump has expressed doubts about reaching a trade deal with Canada before his August 1 deadline, suggesting Canada might simply face tariffs instead of negotiation. Canadian Prime Minister Mark Carney has firmly stated Canada "will not accept a bad deal" despite the pressure. Trump has already imposed various tariffs on Canadian goods, including 25% on certain items, 50% on aluminum and steel, and 25% on foreign-built vehicles, claiming these measures will boost American manufacturing.

Who is affected

Canadian exporters and manufacturers
U.S. importers buying Canadian goods
U.S. consumers (who might face higher prices)
Canadian auto industry
American manufacturing sector
Citizens of both countries reliant on cross-border trade

What action is being taken

U.S. and Canada are engaged in ongoing trade and security negotiations
Trump is implementing his global tariff strategy with Canada and other countries
Canadian officials are continuing talks while refusing to rush into an unfavorable agreement
Trump is imposing various tariffs on Canadian goods (25% on certain goods, 50% on aluminum and steel, 25% on foreign-built vehicles)

Why it matters

Canada sells three-quarters of its products to the U.S.
The auto industries of both countries are deeply interconnected
The tariffs and trade tensions are disrupting the global economy
Products could become more expensive for U.S. consumers
American manufacturing and jobs could be affected
The outcome will impact the economic relationship between two major trading partners

What's next

No explicit next steps stated in the article

Read full article from source: BBC