Canada faces a 35% tariff threat starting August 1
With the August 1 deadline approaching and the threat of 35% US tariffs looming, Prime Minister Mark Carney met with provincial premiers Tuesday to provide updates on trade talks with the United States, stating that a deal will only proceed if it serves Canada’s interests.
According to Carney, discussions with US officials are ongoing and involve his chief of staff and senior ministers. Canada-US Trade Minister Dominic LeBlanc is expected to travel to Washington in the coming days. Carney said, “We are only going to accept the best deal for Canada.”
The meeting took place during the second day of the Council of the Federation sessions in Huntsville, Ontario. The federal government is seeking a new economic and security agreement with the US, while President Donald Trump has threatened to raise tariffs on Canadian goods to 35%.
Carney said last week that a tariff-free agreement may not be achievable and suggested that the August 1 target date could shift depending on the terms presented. “That depends. There’s two sides to a deal,” he said after the meeting. “We’re working on behalf of Canadians, and we will agree a deal if there’s one on the table that is in the best interest of Canadians, just as the United States will do in the look for the best interests of the US.”
The discussions also covered domestic legislation, including Bill C-5, which the Liberal government refers to as the One Canadian Economy and the Building Canada Act. Carney said the premiers discussed what Canada can control and how it can move forward regardless of the outcome of the trade talks.
US Treasury Secretary Scott Bessent said that the Trump administration is focusing on the quality of trade agreements, not deadlines.
Ontario Premier Doug Ford said the talks with Carney were productive and that the premiers are aligned in their support for the negotiating team. A source in Ford’s office said he raised the need to attract investment from outside the US and prepare for scenarios if no agreement is reached.
Premiers Tim Houston of Nova Scotia and Susan Holt of New Brunswick both said they trust the federal team. Houston noted that the timeline should not compromise negotiation leverage, while Holt said the focus should remain on the terms of any agreement.
