Canadian PM Mark Carney ready to strike trade deal with US as tariff deadline looms

Canada is ready to sit down with the United States and strike a trade deal when Washington is ready, Prime Minister Mark Carney said on Thursday, as the two countries remain locked in a tariff dispute.

Speaking in Thunder Bay, Ontario, Carney said any eventual trade deal with the US must provide stability and credibility. His comments came after trade talks between the two countries broke down on August 21.

"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, as per Reuters.


The United States has imposed a 50% tariff on about C$27.6 billion ($20 billion) of Canadian goods, while Canada has announced “dollar-for-dollar” retaliation against US imports from September 8.

The dispute has put fresh strain on the deeply integrated Canada-US trading relationship, with Canada sending more than 70% of its exports to the US. The tariffs have particularly exposed Ontario’s auto and steel industries, while Quebec has also been hit by weaker metal exports.

The impact is being felt in the US as well. Canada’s retaliatory tariffs target products including steel, furniture, appliances and agricultural equipment, with Ohio, Illinois and Pennsylvania among the states facing significant exposure.

The trade war is also pushing Canada to diversify its export markets. Carney has pledged to double non-US exports over the next decade, as Canadian businesses look for alternatives to their biggest trading partner.

However, manufacturing sectors deeply integrated with US supply chains face greater challenges in reducing their dependence on the American market, keeping the prospect of a stable Canada-US trade agreement central to Ottawa’s strategy.