Canada Seeks Trade Deal with US Amid Ongoing Tariff Dispute

Canada's Prime Minister Mark Carney said his government is ready to sign a trade deal with the United States that benefits both countries. He emphasized that any agreement must have stability and credibility.

In recent talks, negotiations between the US and Canada broke down when discussions were down to the wire. Since then, the US has imposed 50 percent tariffs on $20bn worth of Canadian goods, and Ottawa's retaliatory tariffs on a similar amount will come into effect next week. The US has also threatened 50 percent tariffs on all Canadian cars and car parts from January 1.

Carney dismissed recent comments by US Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent that Canada walked away from a trade deal because of domestic politics, saying 'I don't think, with all respect, appointed, unelected cabinet members in the United States are experts on Canadian politics.'

The US accounted for 66.35 percent of Canada's total exports in July, down from 69.39 percent in June and 72.64 percent a year ago. However, Canada's import dependence on the US has only narrowed to 59 percent in the last 12 months compared with 62 percent in 2024.

Carney announced plans to spend 4.7 billion Canadian dollars ($3.4bn) to build and maintain more than 300 Via Rail passenger rail cars in Canada, using facilities in Quebec and Thunder Bay, a shift away from importing them from the US.