Canada-U.S. Trade Talks Stall as Tariffs Rise to 35%

Canada is facing heightened trade tensions with the United States after President Donald Trump increased tariffs on Canadian goods to 35%, escalating from previous rates and targeting key sectors such as steel, aluminum, and automobiles. Despite an August 1 deadline for a trade agreement, negotiations remain stalled, with Canada insisting it will not accept a deal that harms its economy and workers, as emphasized by Minister Dominic LeBlanc. Prime Minister Mark Carney, supported by public opinion favoring a tough stance, continues to resist U.S. pressure, including over Canada's recognition of Palestinian statehood, which Trump criticized but did not deem a deal-breaker. Canadians largely support retaliatory tariffs, with a majority willing to match or partially match U.S. tariff rates, signaling a readiness to endure economic pain to protect national interests. The New Democrats have urged the Canadian government to hold firm, criticising Carney’s concessions and calling for stronger protections for workers and public services amid ongoing tariff impacts. Business groups also warn that prolonged trade instability could severely affect key industries, highlighting the urgency of reaching a stable agreement.