President Donald Trump has extended the global trade negotiation deadline from July 9 to August 1 for most countries, granting them additional time to avoid steep U.S. tariffs. However, Canada’s deadline remains fixed at July 21, according to senior officials in Prime Minister Mark Carney’s office.
The White House confirmed Monday that Trump signed an executive order delaying the tariff implementation for 14 nations—including Japan and South Korea—but warned that countries failing to reach deals in time will face aggressive tariff hikes. Each country has received formal letters specifying the potential penalties and making clear that any retaliatory action will be met in kind.
Canada is not listed among those newly targeted, but it continues to wrestle with long-standing U.S. tariffs on steel, aluminum, automobiles, and additional sanctions related to fentanyl. These include a 25% tariff on non-compliant exports and added levies on energy and potash products.
Canada’s current talks with the U.S. center around a broader economic and security agreement that began taking shape during a March summit between Prime Minister Carney and President Trump. Progress stalled briefly last month when Trump demanded the elimination of Canada’s planned digital services tax. In a move to salvage the negotiations, Ottawa withdrew the tax just before its June 30 rollout.
Trade observers believe Canada may benefit from waiting to see how other countries settle. “There’s a potential last-mover advantage here,” said Fen Osler Hampson, an international affairs expert at Carleton University. “By watching what terms others accept, Canada might be able to negotiate more favorable tariff rates.”
So far, the Trump administration has finalized deals only with the United Kingdom and Vietnam. These agreements reveal a pattern of capped tariffs and export quotas. The U.K., for example, accepted a 10% tariff on automobile exports, capped at 100,000 vehicles annually.
Though Trump insists that negotiations are progressing, Treasury Secretary Scott Bessent signaled that major developments may unfold within the next 48 hours. “The president is focused on the quality of these agreements, not just the optics of signing something,” he said, noting that U.S. pressure has already shifted several countries’ negotiation tactics.
With the July 21 deadline looming for Canada, and trade negotiations intensifying worldwide, the next few weeks could reshape the continent’s economic landscape.