Carney urges the U.S. to lift all tariffs or Canada will retaliate

Canada’s Prime Minister Mark Carney says he expects to reach a commercial and security agreement with U.S. President Donald Trump soon, but he cautioned that the deal may not be ready in time for the Group of Seven summit in Alberta next week.

In a French interview with Radio-Canada, Carney said talks are “intensive” and described a “good relationship” with Trump. He added, however, that “there is no agreement yet for signature.” He noted that Canada and the United States have plenty of areas where they could cooperate, especially in aluminum, aerospace, and defence.

According to Bloomberg’s sources familiar with the negotiations, both sides have put proposals on paper, and recent discussions have zeroed in on trade rules for steel and aluminum. Those sources said the Canadian government has generally been more optimistic about reaching a deal than its American counterparts.

After President Trump imposed a 50% import tax on foreign steel and aluminum, Carney’s government opted not to raise its own counter-tariffs on U.S. goods. He warned that further retaliation remains on the table if needed.

“The G7 in Alberta will be important, including the bilateral meeting with Mr. Trump,” Carney said. “We’re going to take the time we need. We need an agreement that’s in Canada’s interest; otherwise, we don’t sign. We can wait. The stronger we get, the weaker the Americans get.”

Carney urges the U.S. to lift all tariffs or Canada will retaliate

Carney stressed that Canada wants all U.S. tariffs lifted and that the Canada-U.S.-Mexico trade agreement, which Trump signed in 2020, must be honoured. “If we continue to make progress, we’ll wait; otherwise, we’ll prepare to retaliate,” he said. “There are unfair, illegal tariffs, and the Americans must remove them.”

Beyond steel and aluminum duties, the Trump administration has also imposed tariffs on foreign-made vehicles and slapped 25% on other Canadian and Mexican products that fall outside the North American trade accord. Trump has even suggested new import taxes on lumber and copper, both key exports for Canada.

Carney added that if a deal is reached, Canada could once again view the U.S. as a reliable partner. “It depends,” he said, noting his government is also seeking to expand trade ties with European countries. “We can have a narrower agreement, not a global one with the Americans right now.”

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