US-Canada Trade Talks Escalate Again as Trump Demands More Concessions

Canadian Prime Minister Mark Carney said new tariffs from the United States were almost inevitable. According to him, in the current environment, Washington does not sign trade agreements without pressure. Negotiations with the United States have been ongoing since the spring, and the Canadian side is seeking to cancel tariffs on steel and aluminum, as well as maintain preferences under the USMCA agreement.

After Carney's visit to the White House in May, it seemed that progress was being made: Canada abandoned the digital services tax and promised to increase military spending. But then Trump sent Carney an open letter threatening to impose a 35% tariff on Canadian goods from August 1, citing a trade deficit, drug trafficking, and restrictions on dairy products.

Experts believe that this is part of a broader pressure strategy. Court hearings on the legality of Trump's emergency tariffs will begin on July 31, and he is trying to get as many concessions as possible while the mechanism is still working. If the court limits Trump's actions, he will move on to targeted tariffs for reasons of national security.

In addition to trade demands, Washington is also pressuring Canada in other areas: demanding a relaxation of environmental standards, the abolition of ESG/DEI policies, and the resumption of projects like the Keystone XL oil pipeline. This runs counter to Carney’s green agenda.

According to analysts, Trump may drag out the negotiations until the fall review of USMCA, increasing instability. “The next year will be difficult and unpredictable for Canada,” sums up expert Tory Smith.