Canada is pushing back after U.S. President Donald Trump raised tariffs on Canadian imports to 35 percent, escalating a brewing trade dispute. Prime Minister Mark Carney responded to the move by saying he will engage in talks with Washington “when it makes sense,” signaling a cautious approach amid rising tensions.
The White House announced the tariff hike earlier this week, increasing the previous 25 percent rate and citing Canada’s “continued inaction and retaliation.” Although Trump claimed Carney had reached out before the August 1 deadline, no negotiations took place, and the tariffs were imposed without delay.
Speaking from British Columbia, Carney underscored Canada’s vital economic relationship with the U.S., stating, “Canada is the second-largest investor in the United States today in the world. We have 40 million people. That puts in context the state of the relationship.” He acknowledged the absence of an agreement and warned that trade between the two nations would inevitably suffer.
The new tariffs hit major Canadian exports—steel, aluminum, and copper—with a combined duty now totaling 50 percent. Canadian officials argue the move violates the Canada-United States-Mexico Agreement (CUSMA), which guarantees tariff-free access for the majority of Canadian exports to the U.S.
President Trump warned that countries failing to reach new trade deals by Friday would face even higher tariffs. “We haven’t spoken to Canada today. He’s called, and we’ll see,” Trump said, referencing Carney’s outreach during a White House appearance.
Meanwhile, Canadian Finance Minister François-Philippe Champagne, joined by Foreign Affairs Minister Anita Anand during a visit with Mexican President Claudia Sheinbaum, said Canada is pivoting toward partnerships with countries it can “trust.” Despite the growing rift, Carney acknowledged that Trump recently reaffirmed his commitment to the CUSMA framework.
With the Friday deadline fast approaching, pressure is mounting on both nations to reach a resolution and avoid further disruptions to the tightly linked North American supply chain.