Tariff Troubles Loom As Canada, US Pursue Fast-Tracked Trade Deal

This announcement came shortly after Canadian officials had cautioned that significant differences still remained between both countries before any deal could be reached.

As the leading exporter of steel and aluminium to the US, Canada has been hit hard by Trump's tariffs on these key industries, as well as on auto exports.

Source : PTI

In a development that caught many off guard, Canadian Prime Minister Mark Carney revealed on Monday that he and US President Donald Trump have agreed to attempt finalising a new bilateral economic and security agreement within 30 days.

This announcement came shortly after Canadian officials had cautioned that significant differences still remained between both countries before any deal could be reached, reported Reuters.

Carney, who secured victory in the April elections with a pledge to challenge Trump's tariffs, is advocating for what he describes as a revamped partnership on both economic and security fronts with Washington. The two leaders held talks on the sidelines of the G7 summit in Alberta, where Trump once again emphasised his firm stance on tariffs.

Discussions Intensify Amid Tariff Disputes

"Prime Minister Carney and President Trump ... shared updates on key issues raised in negotiations on a new economic and security relationship between Canada and the US," Carney's office stated. The statement further confirmed that both leaders have committed to working towards securing an agreement within the next month.

When asked to clarify if the commitment implied Canada had softened its opposition to some US tariffs, Carney's office did not immediately respond, the news agency reported.

Trump, however, made it clear that his insistence on tariffs remains unchanged. "I have a tariff concept. Mark has a different concept ... we're going to see if we can get to the bottom of it," Trump said, adding, "I'm a tariff person."

Canada Pushes Back as Tensions Simmer

As the leading exporter of steel and aluminium to the US, Canada has been hit hard by Trump's tariffs on these key industries, as well as on auto exports. Carney acknowledged last week that intense negotiations were ongoing and warned that Canada was preparing retaliatory measures should discussions fail to yield results.

Despite the latest optimistic turn, some Canadian officials privately expressed skepticism over the timeline, noting that the US appeared unhurried in its approach. "We are in the middle of a discussion - we are not at the end of the discussion. Our position is that we should have no tariffs on Canadian exports to the United States," stated Kirsten Hillman, Canada's ambassador to Washington. She stressed that talks would persist until an agreement is reached that serves Canada's best interests.