US president Donald Trump has said he does not expect a trade deal with Canada before his 1 August deadline, warning of heavy tariffs if talks fail.
Speaking before flying to Scotland on Friday, Trump said, "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."
Canadian prime minister Mark Carney, however, made it clear this week that Ottawa won’t be rushed. “Canada will not accept a bad deal,” he said, pushing back against US pressure.
Trump has threatened a 35% tax on Canadian goods if no agreement is reached. But the tariff won’t apply to products that fall under the existing North American trade pact between the US, Canada, and Mexico.
Washington has already imposed a 25% blanket tariff on certain Canadian goods, a 50% tariff on aluminium and steel, and a 25% duty on all non-US-built cars and trucks. Trump claims these steps will protect American jobs and industry.
Canada, which sends about 75% of its exports to the US, could take a major hit — especially its auto sector, which is closely tied to the American market.
Talks between the two sides have been ongoing since Carney took office in May, but progress has been slow. Meanwhile, Trump has announced trade deals with other countries, including Japan, which agreed to a 15% tariff in exchange for a $550 billion investment in the US.
Speaking before flying to Scotland on Friday, Trump said, "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."
Canadian prime minister Mark Carney, however, made it clear this week that Ottawa won’t be rushed. “Canada will not accept a bad deal,” he said, pushing back against US pressure.
🚨BREAKING
— Tablesalt 🇨🇦 (@Tablesalt13) July 25, 2025
TRUMP REVEALS THERE IS NO DEAL WITH CANADA AHEAD OF AUG. 1ST DEADLINE
"I think Canada will be one that just pays the tariffs"
"when that letter goes out, they just pay. That's the deal. pic.twitter.com/ncKTM1cog0
Trump has threatened a 35% tax on Canadian goods if no agreement is reached. But the tariff won’t apply to products that fall under the existing North American trade pact between the US, Canada, and Mexico.
Washington has already imposed a 25% blanket tariff on certain Canadian goods, a 50% tariff on aluminium and steel, and a 25% duty on all non-US-built cars and trucks. Trump claims these steps will protect American jobs and industry.
Canada, which sends about 75% of its exports to the US, could take a major hit — especially its auto sector, which is closely tied to the American market.
Talks between the two sides have been ongoing since Carney took office in May, but progress has been slow. Meanwhile, Trump has announced trade deals with other countries, including Japan, which agreed to a 15% tariff in exchange for a $550 billion investment in the US.
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