No deal with US unless tariffs benefit Canada: Canada's PM Carney
3 Min Read
While the talks remain active, Prime Minister Carney has confirmed that Canada will use every moment available before the August 1 deadline to try to reach an agreement.
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Canada's Prime Minister Mark Carney participates in a session of the G7 Summit, Monday, June 16, 2025, in Kananaskis, Canada. (AP Photo/Mark Schiefelbein)
Canadian Prime Minister Mark Carney reiterated Tuesday that his government would only sign a trade deal with the United States if it clearly serves the national interest. His remarks come amid growing trade friction following a series of tariff hikes imposed by the Trump administration, including a sweeping 35% tariff on Canadian exports set to take effect on August 1.
Speaking at a press conference in Huntsville, Ontario, where he is meeting with provincial and territorial premiers, Carney stated that protecting Canadian industries remains paramount.
"We are working on behalf of Canadians, and we will agree a deal, if there’s one on the table, that is in the best interests of Canadians, just as the United States will... look for the best interests of the US," he told reporters.
The three-day summit in Huntsville has focused heavily on the domestic impact of Washington’s recent trade actions. The US has already doubled tariffs on Canadian steel and aluminum to 50% and reaffirmed that goods failing to meet United States-Mexico-Canada Agreement (USMCA) compliance will remain subject to a 25% levy.
Stalled negotiations
Carney previously warned that there is "little evidence" to suggest the current negotiations will produce a tariff-free outcome. "A deal that works for Canada isn’t on the table yet," he said during a speech in Hamilton last week, underscoring the complexity of the talks and the number of unresolved issues, including longstanding disputes over softwood lumber.
Behind the scenes, Ottawa is using all available channels to press its case, including outreach to key US senators and close coordination with Canada’s premiers. The federal government is also exploring sector-specific mitigation strategies to buffer industries most vulnerable to US tariffs, particularly in manufacturing and agriculture.
Read more: Canada, EU deepen trade alliance as Trump unleashes tariff salvo
Tariff standoff
While the talks remain active, Carney has confirmed that Canada will use every moment available before the August 1 deadline to try to reach an agreement. However, he made clear that Ottawa is prepared to walk away if the terms do not deliver real benefits to Canadians.
The prime minister’s firm tone conveys the growing tension between the two trading partners and signals a readiness to endure a prolonged standoff if necessary. With the clock ticking and no breakthrough yet in sight, both sides face mounting pressure to avoid a damaging escalation.
