Canadian Prime Minister Mark Carney stated that Canada is prepared to sign a trade deal with the United States that would benefit both Canadian and US businesses and workers. He emphasized that any agreement would need to ensure stability and credibility. "The deal that’s possible, that’s in the interests of Canadian workers, families and businesses, is also the deal that is in the interests of American families, American businesses, American consumers, and … we’re ready to sit down and strike that deal when the Americans are ready," Carney told reporters on Thursday in Thunder Bay, Ontario.
Carney’s remarks followed the collapse of trade negotiations between the US and Canada last month, which occurred shortly before an agreement was expected. In the wake of the failed talks, the US imposed 50 percent tariffs on $20 billion worth of Canadian goods, and Canada plans to implement retaliatory tariffs on a similar amount next week. Additionally, the US has threatened to impose 50 percent tariffs on all Canadian cars and car parts starting January 1.
Carney responded to comments made by US Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, who suggested that Canada withdrew from the trade deal due to domestic political issues. Carney stated, "I don’t think, with all respect, appointed, unelected cabinet members in the United States are experts on Canadian politics."
He noted a recent softening in the US stance towards a trade deal, indicating that the US had previously maintained a rigid position during negotiations. "There were a few issues that the United States was arguing right up to the last hour," he said, describing it as an "our way or the highway" attitude before the talks broke down. "Now, they’re not," he added. "So all of a sudden, they don’t care about Canadian language or culture and those elements. Well, if they didn’t care, they shouldn’t have kept them in the deal. It’s good. We welcome that."
Following Carney's comments, US President Donald Trump posted on Truth Social, suggesting that it was "very good for Canadian Politicians like Prime Minister Mark Carney to make President Donald J. Trump ‘the enemy.'" He warned that this could lead to a collapse of the Canadian economy, stating it would be "worse than anything that has ever happened to a Canadian politician."
The US remains Canada’s largest trading partner, with nearly 80 percent of Canadian exports historically directed to the US. However, following the imposition of tariffs by Trump last year, Canada has been working to reduce its economic dependence on the US. According to data from Statistics Canada released on Thursday, the US accounted for 66.35 percent of Canada’s total exports in July, down from 69.39 percent in June and 72.64 percent a year ago.
Conversely, Canada’s import dependence on the US has narrowed to 59 percent over the past 12 months, compared to 62 percent in 2024, the data indicated. On Thursday, Carney also announced plans to invest 4.7 billion Canadian dollars ($3.4 billion) to build and maintain over 300 Via Rail passenger rail cars in Canada, utilizing facilities in Quebec and Thunder Bay, marking a shift from importing these cars from the US.