U.S. President Donald Trump expressed dissatisfaction regarding Canada’s recent announcement of potential recognition of a Palestinian state in September, provided certain conditions are met by the governing body in the West Bank. Trump took to his social media platform, Truth Social, to convey his concerns, stating that Canada’s decision could complicate trade negotiations between the two countries.
Prime Minister Mark Carney confirmed that trade discussions with the U.S. have not been finalized just days before the looming deadline. Carney acknowledged the possibility that negotiations might not be concluded by the specified date but assured that efforts are being made to reach an agreement.
Trump had set an August 1 deadline for Canada to finalize a trade deal and threatened to impose a 35 per cent tariff on goods not compliant with the Canada-U.S.-Mexico Agreement (CUSMA). This tariff would apply to Canadian exports currently facing a 25 per cent tariff under Trump’s emergency powers, citing national security concerns related to fentanyl trafficking.
Carney emphasized the strategic importance of certain sectors to the U.S. economy, including aluminum, steel, automobiles, pharmaceuticals, semiconductors, and lumber. He indicated that Canada is not rushing to secure a deal at any cost, aligning with his previous stance on negotiations.
In a recent development, Trump announced a 50 per cent tariff on copper products starting Friday, targeting semi-finished copper products and items heavily reliant on copper in their manufacturing process. The White House clarified that this tariff specifically applies to certain copper products.
Trump hinted at the possibility of additional tariffs on Canada, suggesting that negotiations might not result in an agreement. Canada’s top trade negotiators, Kirsten Hillman and Dominic LeBlanc, have tempered expectations of a deal by the deadline, emphasizing the importance of reaching a mutually beneficial agreement through continued negotiations.
