Trump keeps Canada guessing as trade deadline looms
Two of the senior officials familiar with the negotiations say LeBlanc mainly listens as Lutnick rambles off questions like, 'Why aren't you helping more?'
There is said to be no consistency around the table. Trump's team swerves to a new topic every time the two sides meet — from wanting bigger U.S. banks to have a visible presence in Canada, to griping about the border and dairy quotas, a senior government official said.
A spokesperson for the White House defended the status of talks with Canada in a statement, pointing to the existing U.S.-Mexico-Canada Agreement, which Trump negotiated during his first term.
'The way this has worked with our trading partners who have secured deals or are making progress towards one is that they came to us with deal offers, that were then refined and negotiated further. The vast majority of trade with Canada, moreover, is already covered under USMCA,' the White House official said in a statement.
Trump's team previously suggested that if higher tariffs on Mexico and Canada go into force, the hike would only apply to goods the Trump administration deems as non-compliant with the existing deal — potentially affecting around 60 percent of trade between the countries.
The Trump administration is pressuring Canada to fix what it sees as lopsided trade, a senior government official familiar with the talks told POLITICO. In the meetings, U.S. officials point to trade irritants in the National Trade Estimate report, which include concerns around Quebec's language laws and Canada's war on plastic.
A second official said it's Canada's strategy to allow the Americans to do all the talking, which they appear happy to do.
The Liberal government has several cards at play, including the Arctic and defense. Trump wants to build a massive missile shield over the continent, but he can't build it without Canada.
'It's really a strategic card,' Nunavut Premier P.J. Akeeagok said last week in Huntsville, Ontario.
The Trump administration has also raised concerns that the Liberal government is whining too much about the tariffs — removing U.S. alcohol from shelves and boycotting America.
'This is a negotiation. So sometimes we say, 'oh, I'm not satisfied. Oh, Canadians are difficult.' Well, of course, yes, we are difficult because we're fighting for Canada,' Carney told reporters on Monday.
The administration has taken particular issue with British Columbia Premier David Eby, a progressive politician, who has been one of Trump's most vocal critics. They think he is too emotional because he often lambastes the president on national networks, three officials told POLITICO, instead of working to resolve trade concerns. The administration had similar concerns with Prime Minister Justin Trudeau.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Hill
19 minutes ago
- The Hill
Trump orders a 35% tariff for goods from Canada, citing a lack of cooperation on illicit drugs
WASHINGTON (AP) — President Donald Trump has raised the tariff rate on U.S. imports from Canada to 35% from 25%, effective Friday. The announcement from the White House late Thursday said Canada had failed to 'do more to arrest, seize, detain or otherwise intercept … traffickers, criminals at large, and illicit drugs.' Trump has heckled Canada for months and suggested it should become its 51st U.S. state. He had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries. Earlier Thursday, the president said Canada's announcement it will recognize a Palestinian state would 'make it very hard' for the United States to reach a trade agreement with its northern neighbor. Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America. Prime Minister Mark Carney had tempered expectations over tariffs, saying Ottawa would only agree to a deal 'if there's one on the table that is in the best interests of Canadians.' In a statement released early Friday, he said he was disappointed by Trump's actions and vowed to diversify Canada's exports. 'Canada accounts for only 1% of U.S. fentanyl imports and has been working intensively to further reduce these volumes,' he said, pointing to heavy investments in border security. Carney added that some industries — including lumber, steel, aluminum and automobiles — will be harder hit, but said his government will try to minimize the impact and protect Canadian jobs. Canada was not included in Trump's updated list of tariff rates on other countries announced late Thursday. Those import duties are due to take effect on Aug. 7. Trump sent a letter to Canada a few weeks ago warning he planned to raise duties on many goods imported from Canada to 35%, deepening the rift between the two North American countries that has undermined their decades-old alliance. Some imports from Canada are still protected by the 2020 United States-Mexico-Canada Agreement, or USMCA, which is up for renegotiation next year. The White House's statement said goods transshipped through Canada that are not covered by the USMCA would be subject to a 40% tariff rate. It did not say where the goods might originate. President Donald Trump said Thursday that there would be a 90-day negotiating period with Mexico after a call with that country's leader, Claudia Sheinbaum, keeping 25% tariff rates in place.


CNBC
20 minutes ago
- CNBC
CNBC Daily Open: New Trump tariffs (August remix) have dropped
The first time U.S. President Donald Trump unveiled his "reciprocal" tariffs on the rest of the world, the April 2 event had a cinematic, even grand, quality. It took place at the White House Rose Garden. There was a live band playing, according to The Wall Street Journal. Trump hoisted huge physical charts of his tariff rates, which were helpfully color-coded for visual clarity. This time, Trump's updated "reciprocal" tariffs, released the night before they come into effect on Aug. 1, seemed in comparison stripped of pomp and glamor. The White House's executive order popped up around 7 p.m. ET, just as people in the U.S. were getting off work. There was no live event, no big chart and certainly no entertainment — just a stern website with a black-and-white table. That austerity — and, one might even say, stealth — surrounding the recent announcement suggests two things. First, the White House could be aware that the dramatic shock of tariffs has less power to sway trade deals when staged a second time. The "90 deals in 90 days" that trade advisor Peter Navarro had promised in April are, after all, nowhere in sight. Trump, however, still left ajar the door to making "some kind of a deal." Second, the U.S. might actually be pleased with the effects of its higher-than-expected tariffs on countries without deals, and is willing to keep levies at those levels. In June, the U.S. Treasury Department reported an unexpected surplus thanks to tariff revenue, which were more than four times higher from a year ago. And economists aren't as alarmed by tariff-driven inflation as they once were. All that's speculation, of course. The order could have been released in this low-key fashion simply because the Rose Garden is now more like a Concrete Path. Or perhaps Trump doesn't want the penguins on the Heard and McDonald islands to hear about his levies this time. The U.S. rejigs tariff rates ahead of Aug. 1 deadline. Trump's executive order also imposed a 40% duty on all goods considered to have been transshipped to America. Here's how Asian leaders are reacting to the announcement, made Thursday evening stateside. The S&P 500 falls, retreating from an intraday high. Microsoft shares, however, rose around 4% to push the company's market cap above $4 trillion. Asia-Pacific markets — and tech giants, in particular — fell on Friday as investors digest latest tariff developments. Apple beats expectations for profit and revenue. The Cupertino-based company's iPhone sales grew 13% year over year, while overall revenue rose 10% in its fiscal third quarter, the fastest growth since December 2021. Amazon's gloomy guidance overshadows its earnings. Even though the company surpassed Wall Street's estimates for its second-quarter results, its expected operating income for the current quarter wasn't as high as analysts had hoped for. [PRO] Novo Nordisk's stock plunge isn't that surprising. On Tuesday, the firm's shares fell as much as 26% after it slashed its full-year guidance — and appointed a new CEO. Here's why companies tend to make both announcements simultaneously. Tariff turmoil: How global CEOs are shifting gears In interviews with CNBC this earnings season, CEOs across industries sent a clear message: tariffs are no longer just a political tactic. As trade rules grow more uncertain and tariffs resurface in policy discussions, business leaders say they're rethinking everything from where factories are located to how products are priced. The old "just in time" model is giving way to something more cautious: make goods closer to the buyer, ask for exemptions where possible, and stay alert to shifting consumer habits. —

Business Insider
20 minutes ago
- Business Insider
Y Combinator is looking for DOGE-related startups for its next cohort — and 5 other themes
Y Combinator has opened applications for its fall cohort, and one of its startup themes focuses on cutting government waste. The theme — "Using LLMs Instead Of Government Consulting" — echoes the mission of the Department of Government Efficiency, a Trump administration initiative to slash spending at the federal level. While the famed accelerator did not explicitly mention DOGE, YC said on its website that it wants to fund startups that build large language model-powered software to take over the kind of work that consulting giants like Deloitte and Accenture do for the public sector. "There is political pressure to cut wasteful consulting and spending," YC's Gustaf Alstromer wrote. "The US government spends over $100 billion a year on consulting. As you might imagine, this isn't the most efficient or innovative part of our economy." Alstromer said that "LLMs today are so good that they can already do the jobs of many consulting firms," but startups "can do a lot better" at building software for government use. He added that YC has already backed companies helping agencies get certified to sell to the government or using AI to ensure the legality of new laws and policies. Y Combinator did not respond to a request for comment from Business Insider. The accelerator's pitch comes as pressure mounts to rein in government spending and fix slow-moving bureaucracies. Earlier this year, the Trump administration asked the federal government's highest-paid consulting firms to justify their spending on contracts using language that "a 15-year-old should be able to understand." DOGE was, until April, headed by Elon Musk. That's just one of six themes outlined in YC's Fall 2025 "Request for Startups," a wish list that signals where Silicon Valley could see the next wave of breakout companies Applications for the accelerator close on Monday evening, Pacific time. Here's what else YC is betting on: AI training for blue-collar workers YC wants to tackle the talent bottleneck — not in tech, but in the trades. While the AI race has focused on hiring engineers and researchers, there's a growing shortage of skilled tradespeople like electricians and welders — the very people needed to build the infrastructure behind AI, including data centers and semiconductor fabs. "We think you could use AI to create personalized training programs to get people job-ready in months, not years," wrote YC's Harj Taggar. "This is where multimodal AI could create opportunities," he said. His examples included a voice assistant that could coach someone through tasks in real time or an AR/VR environment that could simulate the work, with vision models giving live feedback like a human trainer would. Video generation as a core technology YC said video is evolving into a "new basic building block for software." It will unlock new kinds of apps, developer platforms, and real-time experiences. "Video generation models are getting really good," wrote YC's David Lieb. "Soon, you'll be able to generate near-perfect footage of anything, on the fly, for a marginal cost approaching 0," he said. "When this happens, a lot of new ideas become possible." AI-generated video is "definitely going to change media and entertainment" and reshape how we shop and build games and simulations, he added. The first 10-person, $100 billion company The first 10-person, $100 billion company? YC thinks it's not only possible but imminent. The accelerator said it's now possible for small, high-agency teams — or even a solo founder — to build a multibillion-dollar company with just $500,000 in seed funding. New AI tools will "make it easier for ambitious founders to scale with far fewer people," YC's Aaron Epstein wrote. "With smaller, efficient teams at scale, they won't get bogged down with the politics, excessive meetings, and lack of focus that grinds huge companies to a halt," Epstein wrote. "They can just focus on winning with better speed and execution." The best startups in the future will "optimize for one metric: revenue per employee." YC's focus comes after at least 12 AI startups crossed the $1 billion valuation threshold with small teams, Business Insider reported in May. "We're going to see 10-person companies with billion-dollar valuations pretty soon," OpenAI CEO Sam Altman said in February 2024. "In my little group chat with my tech CEO friends, there's this betting pool for the first year there is a one-person billion-dollar company, which would've been unimaginable without AI. And now [it] will happen." Infrastructure for multi-agent systems A future where AI agents don't just work alone — they collaborate. AI agents are evolving from "single-threaded loops" into "multi-agent systems," YC's Pete Koomen wrote. These systems can break down big tasks, run in parallel, and tackle complex jobs faster than any single model could But they are difficult to build and could introduce new problems that need to be solved at a "higher level of abstraction," Koomen said. YC said it's looking for builders who have "felt this pain in production" and want to create tools to make multi-agent systems easier to build and maintain. AI-native enterprise software Lastly, YC said it sees a massive opportunity in reinventing enterprise tools from the ground up, with AI at the core. Just like how Salesforce and ServiceNow rode the cloud wave 25 years ago, YC said the next generation of tech giants will be built around AI-native software. "Today's incumbents will struggle to rebuild their product around this new technology, giving today's startups the time they need to win," said YC's Andrew Miklas. These startups will have AI "embedded deeply and thoughtfully throughout, and will help employees do their work faster and more accurately," he said. "Think Cursor for sales, HR, and accounting."