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Trump lowers expectations of trade deal with Canada as tariff deadline looms

Trump lowers expectations of trade deal with Canada as tariff deadline looms

WASHINGTON – U.S. President Donald Trump is dampening expectations of a deal with Canada materializing at the last minute as his tariff deadline looms.
In a post on social media, the president says it will be very hard to make a deal with Canada after Prime Minister Mark Carney on Wednesday announced Ottawa intends to recognize a Palestinian state.
Trump previously 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.
While Trump continues to boast about his tariffs on the world, the president's main tool to realign global trade will face a hurdle in court today.
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The U.S. Court of Appeals for the Federal Circuit will hear from businesses and states that say Trump's use of a national security statute to implement the duties is beyond his powers as president.
This report by The Canadian Press was first published July 31, 2025.
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