The Canadian government is preparing for complex trade negotiations with the United States, acknowledging the possibility of partially maintaining customs fees. Prime Minister Mark Carney told journalists that the current trade dynamics between the two countries are extremely complex and unpredictable.
President Donald Trump announced an intention to impose new 35-percent tariffs on Canadian goods, effective August 1. This move is seen as another step in the ongoing trade war that began after Trump took office in January.
Economic analysts point out that Canada is extremely vulnerable, as it exports about three-quarters of its production to the American market. The automotive and metallurgy sectors are particularly threatened by such protectionist measures.
The existing trade agreement between the USA, Canada, and Mexico (known as CUSMA) provides certain relief but does not guarantee full protection from additional trade restrictions. According to data from the Royal Bank of Canada, about 91% of Canadian exports to the USA currently cross the border without additional tariffs.
Trump stated in an interview that current negotiations with Canada are moving in a positive direction and are expected to conclude successfully. Meanwhile, Canadian authorities maintain a firm position that they will defend their national economic interests.
In addition to the planned 35-percent tariffs, the USA has already imposed 50-percent restrictions on imports of aluminum, steel, and copper. These protectionist measures are seen as an attempt to restructure existing trade relations in North America.
Carney emphasized that any potential agreement must fully meet Canada's interests. He did not rule out the possibility of retaliatory measures if negotiations do not lead to a mutually beneficial solution.
Analysts describe the current trade situation as extremely dynamic and unpredictable, expecting additional negotiations and potential compromises from both sides.
Despite the tension, trade relations between the USA and Canada remain extremely important for the economies of both countries, which suggests seeking mutually acceptable solutions.