And while Canada is preparing for a second round of negotiations to begin with the United States, they’ve established a new September deadline to reach agreement. In fact, President Donald Trump recently threatened a 35% tariff on all goods coming from Canada. As a result, this audacious move has raised alarm bells among Canadian officials and Canadians alike.
Canada had originally announced a deadline of July 21 to conclude negotiations. With every turn in the political landscape, this timeline has moved up. Prime Minister Mark Carney narrowly won their general election in April by promising to keep his “elbows up” in the face of US threats. Now, he is living under the microscope and he’s being scrutinized over his ability to deliver a good deal.
In a letter to more than 20 hosting countries, Trump spelled out his vision. He aspires to create new deals with America’s trade partners. This decision has increased pressure on Canada, leading to active debates among political leaders and citizens. Canadians across the political spectrum have united to counter Trump’s planned tariffs. They focus heavily on the argument that these measures would economically cripple their state.
“Our government does not negotiate in public so it would be inappropriate for me to comment.” Foreign Affairs Minister Melanie Joly reiterated the point. We asked her for more detail on Canada’s plan, in light of Trump’s latest threats. She acknowledged the unpredictability of the US administration, stating, “We’re dealing with a very unpredictable US administration.”
Political observers and analysts have begun weighing in on the dynamics of the situation. In late March, Roland Paris had raised the red flag about the precarious state of the negotiations. The Canadian government has claimed that Canada gave. He warned, “If, in the end, Carney appears to have capitulated to Trump and we’re left with a bad deal, he will pay a political price at home.”
The Canadian government has removed its proposed Digital Services Tax (DST) aimed at large tech companies after Trump indicated that this policy could jeopardize negotiations. This decision underscores the careful line that Carney will have to walk between shielding Canadian interests and countering Trump’s bully trade-war.
Fen Hampson, a political analyst, expressed that Canada still possesses some leverage in these negotiations, despite having a smaller economy compared to the US. He noted, “You can’t judge the outcome of negotiations by the last move or the concession that’s made,” implying that strategic moves can still yield positive results.
Minister of Public Safety and Solicitor General David Eby underscored the need for community. He noted that Trump’s letter calls on Canadians to unite in these difficult days and reinforces the notion. Pierre Poilievre, Leader of the Conservative Party of Canada, announced that his party stands ready to do whatever it takes. They have promised to get “the best deal for Canada.”
As these discussions move forward, it’s still unclear how Carney will be able to navigate through these complicated negotiations. He has to demonstrate that he can take on Trump and do so convincingly. A better deal for Canada hangs in the balance.
“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses.” – Mark Carney
Canadians are counting as the new deadline approaches, with bated breath for the outcome. There may be no better time for our nation’s economy and international relations. Those stakes are immense as both sides, still far apart on key issues, struggle to reach a deal in the face of increasing hostility.