After midnight on Thursday, U.S. President Donald Trump expressed dissatisfaction on social media over Canada’s announcement of supporting the recognition of a Palestinian state in September, provided certain commitments are met by the governing body of the West Bank. Trump’s post on Truth Social stated that Canada’s decision would complicate trade negotiations between the two countries.
Prime Minister Mark Carney confirmed on Wednesday that trade talks with the U.S. were still ongoing, just two days before the deadline. Carney mentioned during a news conference that negotiations might not conclude by August 1, but both teams were putting in efforts to reach an agreement.
Trump had set an August 1 deadline for Canada to finalize a trade deal and threatened to impose a 35 percent tariff on goods that do not comply with the Canada-U.S.-Mexico Agreement. This tariff would apply to Canadian exports currently facing a 25 percent tariff under Trump’s emergency powers, citing national security concerns related to fentanyl trafficking.
Carney emphasized that certain sectors like aluminum, steel, automobiles, pharmaceuticals, semiconductors, and lumber were crucial to the U.S. economy. He also mentioned that Canada’s aim was not to rush into a deal at any cost.
In a separate development, Trump announced a 50 percent tariff on copper products starting Friday, specifically targeting semi-finished copper products and items heavily utilizing copper in their production. Trump hinted last week that the U.S. might not come to an agreement with Canada, potentially leading to additional tariffs.
Canada’s top trade negotiators, Kirsten Hillman and Dominic LeBlanc, have played down the likelihood of a deal by August 1, emphasizing the importance of reaching the right agreement through continued negotiations.