Canadian Prime Minister Mark Carney stated that he will not agree to a subpar trade deal with the United States.
His statement comes as the critical deadline of August 1 approaches.
If both countries fail to reach a middle ground, US President Donald Trump might impose a 35% tariff on imports from Canada.
Carney said that “our objective” is finalizing a deal “that will be in the best interest of Canadians.”
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The two are among each other’s largest trading partners. But tensions have surged since Trump became the president earlier this year and launched a broad tariff strategy.
He said the tariffs are aimed at boosting American manufacturing and protecting domestic jobs.
But the step has sparked global concerns, and experts say this approach will harm longstanding trade relationships without offering clear economic benefits.
Earlier, the US had imposed significant tariffs on Canadian imports. These include tariffs from 25% to 50% on various products.
Carney said that Canada will ponder imposing similar tariffs on American imports to protect its domestic industries.
He noted the step could be taken “in the next couple of months.”
Reports say 75% of exports from Canada go to the US, and as such, its economy is intricately tied to Washington.
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Much of these exports include products such as aluminum and lumber, oil, vehicles, and auto parts.
This also covers machinery, pharmaceuticals, and food products.
On the other hand, the US exported goods worth USD 350 billion to Canada.
However, President Donald Trump has defended his aggressive tariff plans by claiming the US has been treated unfairly in international trade.
He suggested it will help put pressure on Canada to reduce illegal shipments of fentanyl.
However, a US Customs and Border Patrol report shows that only 0.2% of fentanyl seizures occur at the Canadian border.
Though Trump has finalized deals with nations such as the UK, Japan, and Indonesia, many of these agreements still retain high tariffs.
Also on Tuesday, the White House announced a deal with the Philippines that includes a 19% tariff on goods.
Also Read: Trump’s Tariff Faces Worldwide Resistance, India Urged To Stay Firm And Hold: GTRI
