Trump signals possible collapse of Canada deal, says Washington ready for tariff war

Before departing for Scotland, Trump suggested that his administration might impose tariffs unilaterally. Speaking to reporters, he said:

"We haven't really had a lot of luck with Canada. I think Canada could be one where there's just a tariff, not a negotiation," the US president stated.

According to Reuters, Canadian officials have made it increasingly clear that the chances of reaching a trade agreement with the US by August 1 are very slim.

Dominic LeBlanc, Canada’s federal minister responsible for US–Canada trade, made a statement to reporters in Washington following two days of negotiations. He said, "We've made progress, but we have a lot of work in front of us." LeBlanc added that Canada would take the time necessary to secure the best possible deal.

A week earlier, Canadian Prime Minister Mark Carney suggested that Canada might not succeed in persuading the US to lift all trade-related sanctions.

Reuters notes that both countries are racing to finalize a deal before August 1, when Washington has threatened to impose a 35% tariff on all Canadian goods not covered by the USMCA (United States–Mexico–Canada Agreement).

Earlier in July, US Ambassador to Canada Pete Hoekstra expressed optimism about the negotiations, stating he believed a deal would be reached soon.