Prime Minister Mark Carney says it’s possible any trade deal with U.S. President Donald Trump could include tariffs and he expects negotiations to “intensify” ahead of an Aug. 1 deadline for new tariffs.
Carney told reporters there was “not a lot of evidence” for any country to have a tariff-free agreement and it was unlikely Trump would agree to one with Canada.
“The government has consistently stood up for Canadian workers and businesses throughout these negotiations, and we’ll continue to do so,” Carney said Tuesday. “I expect the discussions will intensify between now and the end of the month and we’ll be working hard on that.”
The prime minister made the comments ahead of a cabinet meeting called to focus on the new tariff threat.
The White House says the new tariff wouldn’t apply to goods that are compliant with the Canada-U.S.-Mexico Agreement (CUSMA) on trade.
Carney, in remarks to reporters, also stressed the federal government remains committed to its plan to build a “strong Canadian economy.”
“At the same time, we need to recognize that the commercial landscape globally has changed, it’s changed in a fundamental manner and we will continue to focus on what we can most control, which is building a strong Canadian economy,” he said.
He said that includes ensuring “strong” steel, aluminum, automotive and copper industries.
Previous trade deals reached by Trump have included tariffs, with the U.K. coming to a framework agreement in May that kept a baseline 10 per cent duty against British goods.
Canada has not responded formally to the latest threat, nor signalled a response to Trump’s plans to impose tariffs on copper imports and double existing levies on steel and aluminum.
But recent polls show while Canadians are confident in how Canada’s leaders can handle Trump, a majority want a firmer approach.
Polling conducted by Ipsos Public Affairs from June 17 to 20 showed 59 per cent of Canadians have confidence in political leaders’ ability to manage the president.
Ipsos data also showed 60 per cent of Canadians said the country should stand up to Trump with retaliatory tariffs even if it increases their own costs.
However, new data from Angus Reid Institute shows 63 per cent of Canadians want the government to take a “hard” approach by refusing difficult concessions even if it worsens trade relations.
About 54 per cent said they’re opposed to an offer like buying more U.S. military equipment, with 66 per cent against giving priority access to Canada’s critical minerals.
Half of Canadians also said Canada should stand firm on supply management, a factor Trump cited in his letter on the tariff hike. Thirty-five per cent said supply management could be used as a bargaining chip but only as a “last resort.”
Some issues had Canadians even more firm, with 72 per cent saying they’re opposed to increasing U.S. access to Great Lakes or Columbia River water.
The NDP are also calling on the federal government to take a firmer stance on negotiations, with the party urging Carney to “cease offering unilateral concessions without securing reciprocal benefits from the U.S.”
“Mr. Carney promised an ‘elbows up’ approach during the election — Canadians expect him to follow through on that commitment,” the statement reads.
The Conservative Party said in an email to Global News that it had requested the standing committee on international trade be recalled for emergency hearings.
In an interview last week with CBC Radio’s The House, which the party quoted in the email, leader Pierre Poilievre said the committee would be the “best way forward in order to get a deal.”
“This will be a chance for all parties to work together on a plan to get back to the table, get a deal done that will end the tariffs … and to, as well, provide the Americans assurance that we’re going to rebuild our military in order to do our part in continental security,” Poilievre said in the interview. “I think that is the best way forward in order to get a deal and bring some certainty to the Canadian economy and our workers.”
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 has also called a First Minister’s meeting with the country’s premiers to discuss the tariffs for July 22.
—with files from The Canadian Press