Canada and the United States Intensify Negotiations to Reach a Trade Agreement Before the Imposition of Tariffs

Canadian Prime Minister Mark Carney announced on Monday, July 28, that trade negotiations between Canada and the United States have reached a critical stage, indicating that the likelihood of reaching an agreement without imposing tariffs remains slim.

Carney confirmed in a statement to the press that both sides are working to finalize the agreement before August 1, the deadline set by U.S. President Donald Trump to impose a 35% tariff on some Canadian imports.

The Canadian Prime Minister described the negotiations as "complex," saying: "The negotiations are at an intense stage. It's a complex negotiation... We will only sign the appropriate agreement." He added during a televised press conference: "There is a possible (understanding), but we have to reach it and see what happens."

This comes after the United States and the European Union signed a framework trade agreement on Sunday, including a 15% tariff on most European goods.

Carney had earlier stated this month that Canada, which relies 75% on its exports to the American market, may have to accept some tariffs. When asked if Canada would avoid any tariffs, he replied: "It is unlikely to conclude agreements without any tariffs at all... but the question is: What is the level of these tariffs? And how big are they?"