Upperhill News

The United States President, Donald Trump has said that his country may end up not striking any trade deal with Canada, but could instead impose higher tarrifs on its close neighbour in the next one week.

Trump had earlier sent a letter to Prime Minister Mark Carney on July 10, threatening to hit Canada with 35 per cent tariffs on Aug. 1 if the two countries failed to reach a deal.

Speaking with newsmen, Trump admitted the two countroes had not really made any progress on the deal, noting that, “We haven’t really had a lot of luck with Canada.

“I think Canada could be one where there’s just a tariff, not really a negotiation,” he said, before departing on a trip to Scotland.

It is the first time Trump has publicly spoken about the state of talks with Canada in nearly two weeks.

The expected new rate would apply to Canadian exports currently being tariffed at 25 per cent, under Trump’s emergency powers, just as he cited the national security threat from fentanyl trafficking.

As of now, most Canadian goods are exempt from that tariff, provided they meet the North American content rules of the Canada-U.S.-Mexico Agreement (CUSMA).

Separately, Canadian steel and aluminium are facing a 50 per cent tariff that the U.S. has imposed on such imports from all countries, while the U.S. tariff on Canadian energy and potash is set at 10 per cent.

“Aug. 1 is going to come and we will have most of our deals finished, if not all. We don’t have a deal with Canada; we haven’t been focused on them,” Trump said.


Trump’s comments are the latest nail in  Canada’s prospects for a deal by the U.S. president’s deadline, with Carney and his government sending out plenty of signals they’re in no rush to sign an agreement.

During a visit to Washington on Thursday, Canada’s top trade negotiators downplayed the likelihood they’ll get an agreement by Aug. 1.

“We’re going to continue to work toward the Aug. 1 deadline,” said Canada-U.S. Trade Minister Dominic LeBlanc.

“But all of these deadlines are with the understanding that we’ll take the time necessary to get the best deal that we think is in the interest of the Canadian economy and Canadian workers.”

Earlier this week, Carney had told a news conference that his objective is “not to reach a deal whatever it costs.”