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Carney expects U.S. trade talks to 'intensify' ahead of deadline and 35% threat

Donald Trump said in a letter to Carney last week that the United States will put a 35 per cent tariff on Canadian goods starting Aug. 1.
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Canadian Prime Minister Mark Carney takes part in a press conference during the Canada EU Summit in Brussels, Belgium on Monday, June 23, 2025. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — Prime Minister Mark Carney says he expects trade discussions with the U.S. will "intensify" ahead of the Aug. 1 deadline to secure a new agreement.

Carney made his comments on his way into the Prime Minister's Office where he will hold a virtual cabinet meeting to discuss President Donald Trump's latest tariff threat.

Trump said in a letter to Carney last week that the United States will put a 35 per cent tariff on Canadian goods starting Aug. 1, but the White House says that new tariff won't apply to goods that are compliant with the Canada-U.S.-Mexico Agreement on trade.

Canada has yet to respond formally to the latest threat, or to Trump's recent moves to impose lofty tariffs on copper imports and double existing levies on steel and aluminum.

Carney and Trump agreed last month to work toward a new trade and security pact by July 21, but the U.S. president unilaterally pushed back the timeline to secure a deal.

The prime minister is also set to meet with Canada's premiers next week.

This report by The Canadian Press was first published July 15, 2025.

The Canadian Press

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