Carney: US trade talks enter 'intensive phase' after Trump-EU deal

Canadian Prime Minister Mark Carney said trade talks with the United States had entered an “intensive phase” after President Donald Trump announced a deal with the European Union.

“We are engaged in these negotiations, but Canada will only sign a deal that is good for our country,” Carney said.

The announcement came as Trump said Canada was not a priority until his August 1 deadline. The new deal with the EU was a major victory for Trump, but did not free Europe from tariffs on steel and aluminum (50%), or the risk of new tariffs, including on pharmaceuticals.

The EU also committed to buying $750 billion in American energy and investing another $600 billion in the U.S. economy. Details of the deal have not yet been released.

Trump threatens Canada with 35 percent tariffs on imports if a deal is not reached by Friday. However, goods that comply with the Canada-US-Mexico Agreement (CUSMA) will not be affected by these measures. Most Canadian exports are CUSMA-compliant goods.

Canada is already suffering from US Section 232 tariffs on steel, aluminum and automobiles. Copper tariffs will also come into effect later this week. According to trade lawyer William Pellerin, the new round of US agreements with other countries is a worrying sign for Canada. No country has yet succeeded in getting sectoral tariffs lifted, which reduces the chances of a successful deal for Ottawa.

Carney emphasized that Canada and the US have a unique relationship because of their shared border, economic interconnectedness and energy cooperation. He noted that Canada is a reliable energy supplier, unlike Europe, which is trying to move away from its dependence on Russia.

Despite the pressure, Carney remains cautiously optimistic: “There is a zone of possible agreement. But we need to get there.”