Politics Insider: A week of dampening expectations on trade deal with U.S.
President Donald Trump said Friday that the United States may not reach a new trade deal with Canada, suggesting he might instead impose more tariffs on the country unilaterally.
As Adrian Morrow reports from Washington, Trump told reporters: 'We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not really a negotiation.'
'We don't have a deal with Canada.'
His comments bookended a week where Prime Minister Mark Carney, his minister responsible for Canada-U.S. trade and the country's 13 provincial and territorial premiers all signalled that trade talks aren't going smoothly.
Carney dampened expectations of a deal by the stated deadline of Aug. 1, saying at a meeting with premiers on Tuesday that Canada 'will not accept a bad deal' just to meet the deadline. The premiers joined that chorus, with Ontario Premier Doug Ford adding 'Donald Trump is very, very hard to deal with.'
And Dominic LeBlanc, Carney's point person in trade talks, said Thursday during a visit to Washington for talks with Commerce Secretary Howard Lutnick: 'We've made progress, but we have a lot of work in front of us.'
With the trade deadline just one week away, the rhetoric has become less reassuring.
Prime Minister Mark Carney called on Israel to give up control of aid delivery to Gaza as reports grow of mass starvation, saying, 'Canada condemns the Israeli government's failure to prevent the rapidly deteriorating humanitarian disaster in Gaza.'
Provinces push for more power over immigration, work permits
The country's 13 premiers said at this week's meeting that they wanted to take more control over immigration, stressing that they plan to use powers under the Constitution to issue work permits.
The key legal issues at the heart of the Hockey Canada verdict
All five former members of Canada's world junior hockey team who were accused of sexually assaulting a woman after a 2018 Hockey Canada gala were acquitted Thursday in a courtroom in London, Ont. Lawyers explain how the judge arrived at her ruling.
Virginia Mearns tapped as Arctic ambassador for Canada
Inuk leader Virginia Mearns has been named Canada's Arctic ambassador, with the Prime Minister asking her to represent Canadian interests in a region that's become a strategic frontier as climate change opens new shipping routes through waters rich with natural resources.
Algoma Steel seeks up to $600-million in trade-war relief
Algoma Steel Group Inc. chief executive Michael Garcia says the Canadian steel maker is in discussions with Ottawa to try to secure a financing package worth more than half a billion dollars as financial pressures mount during a trade war with the United States. One of Algoma's shareholders, Barry Zekelman, said Ottawa is acting 'like a loan shark' in the negotiations.
The Huntsville, Ont., resort of Deerhurst played host to the Council of the Federation meeting this week and the first ministers' meeting.
Fifteen years ago, that same resort made news when it was the setting for another major meeting. What was it?
Scroll to the bottom of this newsletter for the answer.
#MeToo changed our culture, but it couldn't change our courts
The last thing Canada needs is premiers mucking up immigration even more
Lower the voting age? There are better arguments for raising it
Got a news tip that you'd like us to look into? E-mail us at tips@globeandmail.com. Need to share documents securely? Reach out via SecureDrop.
The answer to today's question:
The Deerhurst Resort was also the setting for the 2010 Group of Eight summit, hosted by then-prime minister Stephen Harper.
Hashtags

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


Toronto Sun
12 minutes ago
- Toronto Sun
Carney says trade talks in 'intense phase' after Trump scores win with EU
Trump last week told reporters that Canada wasn't a priority ahead of his Aug. 1 deadline to make trade deals Published Jul 28, 2025 • 4 minute read Prime Minister Mark Carney speaks during a July 28, 2025 press conference in P.E.I. Photo by Colin MacLean / Postmedia WASHINGTON — Prime Minister Mark Carney said Monday that Canada's negotiations with the United States are in an 'intense phase' after President Donald Trump achieved a critical agreement with the European Union days away from his tariff deadline. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The prime minister's comments come after Trump last week told reporters that Canada wasn't a priority ahead of his Aug. 1 deadline to make trade deals. 'There are many aspects to these negotiations,' Carney said in P.E.I. 'We are engaged in them but the assurance for Canadian business, for Canadians, is we will only sign a deal that's the right deal, that's a good deal for Canada.' The EU framework announced Sunday gave Trump a much-needed win as he looks to realign global trade — and it indicates that no nations are likely to get a reprieve from his tariffs. It sets a 15 per cent tariff on most goods, including European automobiles. Trump said 50 per cent tariffs will remain on steel and aluminum. Other details of the deal remain unclear, including its effects on measures the U.S. considers trade irritants, such as Europe's digital services taxes and non-tariff barriers. Your noon-hour look at what's happening in Toronto and beyond. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Trump said the EU had agreed to buy US$750 billion worth of U.S. energy and invest an additional US$600 billion in the United States. The president recently said that countries will have to 'buy down' the threatened tariff rate. Baseline tariffs were also a part of trade deal frameworks previously announced for Japan, Vietnam, Indonesia, the Philippines and the United Kingdom. Countries around the world have been watching to see how many trade deals materialize before the deadline, and what can be gleaned from them for their own negotiations with the Trump administration. Christopher Sands, director of Johns Hopkins University's Center for Canadian Studies, said the EU deal builds on Trump's negotiating style — he loses interest, suggests no deal will happen, insults the other side and 'then at the 11th hour something comes through.' This advertisement has not loaded yet, but your article continues below. 'I know there's been a lot of negativity around a Canada security and economic agreement but it doesn't necessarily mean that we are doomed,' Sands said. 'It may be that we are close and we have a surprise deal.' Trump sent a letter to Carney threatening to impose 35 per cent tariffs if Canada doesn't make a trade deal by Friday. The White House has said those duties would not apply to goods compliant with the Canada-U.S.-Mexico Agreement on trade, better known as CUSMA. Carney and other Canadian officials have been downplaying expectations that a deal will be made by Friday. Most of the goods Canada sends to the U.S. are CUSMA-compliant and won't be affected by the 35 per cent duties. The Canadian economy is still being slammed by Trump's Section 232 tariffs on steel, aluminum and automobiles, and will be hit by copper tariffs the president has said will take effect by the week's end. This advertisement has not loaded yet, but your article continues below. So far, Trump's trade deals 'are really bad omens for Canada,' said William Pellerin, a trade lawyer and partner at the firm McMillan LLP. '(It shows) that the tariffs, particularly the sectoral tariffs, are stickier than we would have thought,' Pellerin said. 'If none of those countries were able to secure a drop in the sectoral tariffs, that is certainly bad news.' Those Section 232 duties are a key target for Canadian negotiators and Pellerin said it's unlikely any deal will be struck by Ottawa if they remain at their current levels. While there are similarities between the Canada-U.S. negotiations and those involving Europe, Carney said there are also many differences. While Europe is looking to end its reliance on Russian energy, Carney said Canada is a reliable supplier of energy to the United States. This advertisement has not loaded yet, but your article continues below. The prime minister said negotiations remain complex but 'there is a landing zone that's possible.' 'But we have to get there,' he said. The EU agreement also averts significant retaliatory duties from a major United States customer — meaning that if Canada can't reach a deal with Washington, it would be more isolated if it attempts to retaliate against the U.S. Canada and China have implemented retaliatory tariffs in response to Trump's trade war but, to allow talks to continue, Ottawa didn't move forward with additional duties. Ontario Premier Doug Ford said Monday he supports a dollar-for-dollar tariff response, particularly to Trump's treatment of Canada's steel and aluminum industry. 'I'm confident with Prime Minister Carney, I know he's going to do his very best to get a deal,' Ford said. 'But I don't trust President Trump.' This advertisement has not loaded yet, but your article continues below. B.C. Premier David Eby said Canada is in a 'different position' than the European Union or Japan, given the deeply integrated nature of North American supply chains. 'We are a reliable partner, we are a good partner, but we also won't get kicked around,' he said. Sands said Carney's recent move to limit imports of foreign steel into Canada will help shore up the domestic market during the tariff tumult while also avoiding the ire of the Trump administration. The prime minister recognizes you can engage in retaliation, Sands said, but 'it doesn't bring you much joy.' He said there are other actions, such as import quotas, that would better protect Canadian markets. MLB Toronto & GTA Golf World Celebrity

Globe and Mail
23 minutes ago
- Globe and Mail
U.S. Treasury says it will borrow $1-trillion in third quarter to rebuild cash balance
The U.S. Treasury said on Monday it expects to borrow US$1.007-trillion in the third quarter partly to replenish its cash balance that dwindled during the latest debt ceiling episode. The figure was US$453-billion higher than its April estimate primarily due to the lower beginning-of-quarter cash balance and projected lower net cash flows. The third-quarter financing projection assumes cash of US$850-billion at the end of September for the Treasury, the department said in a statement. Much higher borrowing in the third quarter were needed to rebuild the Treasury's cash balance following President Donald Trump's tax and spending bill being signed into law on July 4. The debt ceiling increased by US$5-trillion to US$41.1-trillion following the spending legislations enactment. The Treasury's cash had dropped to US$313-billion on July 3, data from money market research firm Wrightson ICAP showed. Trump's 'big, beautiful' bill set to further tarnish U.S. Treasuries' lustre overseas 'These [financing estimates] are in line with our projections and should not be a surprise to the markets since the increased financing need is almost all due to the shortfall in cash balances on September 30, which was a function of the debt limit,' said Kim Rupert, managing director, global fixed income analysis at Action Economics, The Treasury also said it expects to borrow US$590-billion in the fourth quarter, as it projects a cash balance of US$850-billion at the end of December. In the second quarter, the Treasury said it borrowed US$65-billion in privately-held marketable debt, ending the period with a cash balance of US$457-billion. In April, Treasury had estimated borrowings of US$514-billion and assumed an end-of-June cash balance of US$850-billion. The Treasury will unveil details of it borrowing estimates for the quarter on Wednesday when it announces its financing plans. It is widely expected that the Treasury will maintain current auction sizes for notes and bonds and will likely keep them steady for some time. Investors will be looking for guidance as to how long the Treasury can hold off not raising the size of the debt auctions used to fund the ballooning U.S. budget deficit.


Toronto Sun
42 minutes ago
- Toronto Sun
EDITORIAL: PM's view on good trade deal changed
U.S. President Donald Trump and Canadian Prime Minister Mark Carney hold a bilateral meeting during the G7 Leaders' Summit on June 16, 2025 in Kananaskis, Alberta. Photo by Chip Somodevilla / Getty Images We agree with Prime Minister Mark Carney that no deal with the U.S. on trade is better than a bad one, but the problem is Canadians have no idea about what he thinks a good deal is. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account We do know that his definition of a good deal has changed over time. Carney's original position was that a good deal for Canada — the one he was aiming for — was an agreement which eliminated all U.S. tariffs announced by U.S. President Donald Trump. But that's no longer the case. Carney said earlier this month such a deal was unlikely, given that all of Trump's trade agreements to date with the U.K., Japan, Vietnam, Indonesia, the Philippines and now the European Union, which was announced on Sunday, contain baseline tariffs. Responding to the announcement of Trump's deal with the EU on Monday, Carney repeated his position that: 'The assurance for Canadian business, for Canadians, is we will only sign a deal that's the right deal, that's a good deal for Canada.' This advertisement has not loaded yet, but your article continues below. He described Canada's ongoing negotiations with the U.S. as complex and at an 'intense phase,' given Trump's threat to impose a 35% tariff on Canadian imports not compliant with the Canada-U.S.-Mexico Agreement (CUSMA) on Friday, if no deal is reached by then. Trump agreed to CUSMA during his first term as president describing it at the time as the 'the best (trade) agreement we've ever made.' While most Canadian imports to the U.S. are CUSMA-compliant, the bigger concern for us is the separate sectoral tariffs Trump is imposing on Canadian steel, aluminum, automobiles, and copper. On the possibility of a settlement resolving all these issues, Carney said, 'there is a landing zone that's possible, but we have to get there.' If no agreement is reached, Carney will then have to decide whether to impose more counter-tariffs on the U.S. than he already has, keeping in mind that counter-tariffs are paid by Canadian consumers in higher prices for U.S. goods imported into Canada. During the federal election, Carney's campaign platform estimated these counter-tariffs would increase federal government revenue by $20 billion this fiscal year, money he promised to invest in industries and workers hardest hit by Trump's tariffs. MLB Toronto & GTA Golf World Celebrity