As the United States finalizes trade deals with key allies, Canada remains in limbo — facing the threat of sweeping new tariffs unless an agreement is reached with the U.S. before Friday’s deadline.
On Sunday, U.S. President Donald Trump and European Commission President Ursula von der Leyen announced a trade agreement that will impose a 15 per cent tariff on most goods exchanged between the U.S. and the EU. The deal is the latest in a series of bilateral pacts Washington has secured with countries like Japan, the U.K., and Vietnam.
In contrast, Canada is still negotiating and now faces the prospect of 35 per cent tariffs on exports if a deal is not signed by the August 1 deadline. This would be in addition to existing U.S. levies on Canadian steel, aluminum, and automobiles. Copper is expected to be the next target.
Former White House official Larry Haas says Ottawa should be concerned about the strained tone between the two nations. Speaking with CTV News Channel, Haas noted, “The tone between the United States and Canada is a lot more negative than the tone seems to be between the United States and the EU. I think both countries… are preparing for the very strong possibility that we’re going to get tariffs.”
Haas acknowledged that Trump has been known to walk back deadlines, particularly if market conditions shift. “If we approach August 1 and these tariffs are looming, and the stock market all of a sudden becomes shaky, I could envision another extension,” he said.
In recent weeks, Canada has made moves to respond to U.S. concerns, including increasing border inspections and withdrawing its proposed digital services tax. However, Haas warned that the Canadian government is operating in a tough environment and needs to project resolve.
“President Trump respects strength as opposed to weakness,” Haas said. “Canada needs to make clear to the United States that it’s not going to take just any deal.”
While Haas acknowledged that tariffs are not a long-term growth strategy, he also made it clear that President Trump’s enthusiasm for protectionist trade policy is unlikely to be swayed by criticism from Canada or any other nation.