Days before the August 1 tariff negotiation deadline, President Donald Trump stated the U.S. hasn't focused on a trade deal with Canada. The remarks come after months of negotiations with Prime Minister Mark Carney having yet to successfully resolve trade concessions.

“We don’t have a deal with Canada,” Trump told reporters Friday morning.

“August 1 is going to come, and we will have most of our deals finished, if not all. We haven’t really had a lot of luck with Canada. I think Canada could be one where they’ll just pay tariffs. It’s not really a negotiation.” 

His comment comes a day after Canada’s trade minister, Dominic LeBlanc, met with U.S. Commerce Secretary Howard Lutnick and senators. LeBlanc said negotiations are “complex,” acknowledging they may not conclude on time.

President Trump escalated trade tensions with Canada earlier this month, threatening a 35% tariff on Canadian goods not covered by existing free trade agreements, with potential increases if Canada retaliates.

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These tariffs, part of Trump's "America First" policy, aim to reshape global trade and address border security and drug trafficking, particularly fentanyl.

Trump promised tariff exemptions if Canada manufactures in the U.S., promising swift approvals.

Meanwhile, Canadian Prime Minister Carney acknowledged cooperation on fentanyl and praised Trump as a “transformational president,” has struggled to counter U.S. trade actions.

During Carney's snap election, Canada quietly backpedalled on retaliatory tariffs, and the Digital Services Tax was repealed after Trump threatened to suspend trade negotiations if the tax was enacted.

The Trump administration has imposed tariffs on Canadian steel, aluminum (now 50%), automobiles, and copper, effective August 1, 2025.

Despite meetings, including at the G7, and Canada’s attempts to enhance border security through Bill C-2 (which ultimately failed), negotiations have stalled.

Canada delayed counter-tariffs to align with talks, but with ongoing U.S. pressure and no clear resolution, tariffs continue to threaten Canada’s economic stability.