Prime Minister Mark Carney says Canada should brace for the likelihood that any forthcoming trade deal with the United States will include tariffs, casting doubt on the chances of a tariff-free agreement ahead of a critical August 1 deadline.
Speaking to reporters ahead of a cabinet strategy session on the growing trade tensions, Carney acknowledged the “intensifying” nature of negotiations with the White House, warning that a no-tariff scenario is highly improbable given President Donald Trump’s track record.
“There’s not a lot of historical evidence to suggest Trump would support a tariff-free deal — especially not with Canada,” Carney said Tuesday. “But this government has always stood firmly behind Canadian workers and industries, and that will not change.”
The comments come amid growing concerns over a new wave of potential U.S. tariffs, particularly on copper, steel, and aluminum — sectors that have become central to Canada’s defense and manufacturing economy. While the White House insists goods compliant with the Canada-U.S.-Mexico Agreement (CUSMA) would be exempt, Canadian officials remain cautious.
Carney emphasized the government’s broader economic priorities, reiterating Canada’s commitment to strengthening its domestic base.
“We’re focused on what we can control — building a strong Canadian economy in an increasingly uncertain global environment,” he said, highlighting key industries such as automotive, metals, and defense manufacturing.
The pressure is mounting politically at home. The NDP has called on the government to stop making unilateral concessions to Washington, while the Conservatives are pushing for an emergency session of the House trade committee to chart a cross-party plan.
“Carney promised an ‘elbows up’ approach. Canadians expect him to deliver,” the NDP said in a statement.
Conservative leader Pierre Poilievre echoed the need for unity and urgency. “We need a deal that ends the tariffs and brings certainty back to Canadian businesses and workers,” he said in a recent CBC Radio interview. “A renewed pact must also reassure the U.S. that Canada is serious about contributing to continental security.”
Last month, Trump and Carney agreed in principle to pursue a new trade and defense agreement by July 21. However, the U.S. later postponed that timeline unilaterally, prompting Carney to call a First Ministers’ meeting with provincial premiers for July 22 to coordinate Canada’s response.
Public Opinion Favors Tougher Stance
New polling shows a majority of Canadians support a firmer response to Trump’s tariff threats. According to Ipsos, 60% of Canadians would back retaliatory tariffs even if it meant higher domestic prices. A separate Angus Reid poll found 63% want the federal government to refuse major concessions, even at the risk of worsening trade relations.
The same surveys found strong resistance to specific concessions:
- 72% oppose expanding U.S. access to Canadian water resources
- 66% reject giving the U.S. preferential access to critical minerals
- 54% are against buying more U.S. military equipment as a bargaining tactic
Notably, 50% of Canadians say Canada must protect its supply management system, with only 35% willing to offer it as a last-resort trade chip.
As the August 1 tariff deadline approaches, all eyes will be on Ottawa to see whether the federal government can strike a deal — or dig in for a trade fight.