July 25, 2025
RED FM News Desk
Washington – Just days ahead of a critical August 1 deadline, former U.S. President Donald Trump signaled that Canada is not a priority in his trade negotiations, suggesting a deal with Ottawa may not materialize and that tariffs may simply take effect instead.
“We don’t have a deal with Canada,” Trump told reporters Friday during a brief media scrum. “We haven’t been focused. I think Canada could be one where they’ll just pay tariffs. It’s not really a negotiation.”
The remarks come amid heightened trade tensions between Canada and the United States, and only days before Trump’s proposed 35 per cent tariff on Canadian goods is set to take effect. That rate could climb higher if Canada retaliates.
While Trump indicated progress with other trading partners — including the European Union and China — he offered no such optimism about Canada. The former president said he expects “most of our deals finished, if not all” by the Aug. 1 deadline, but downplayed any expectation of a breakthrough with Canada.
Trump’s comments also come in sharp contrast to a more hopeful tone from Dominic LeBlanc, Canada’s Minister of Trade with the U.S., who just a day earlier said he was encouraged after private meetings with U.S. Commerce Secretary Howard Lutnick. LeBlanc acknowledged the negotiations remain “complex” and may not resolve in time to avoid tariffs.
The threatened tariffs would apply to a limited range of goods not already covered under the existing U.S.-Canada free trade agreement, which Trump signed during his first term but has vowed to renegotiate if re-elected. Canada is already dealing with the impact of existing tariffs on steel, aluminum, and automobiles, and new duties on copper are also expected to be imposed as of Aug. 1.
If enforced, the 35 per cent tariffs could significantly disrupt cross-border trade, affecting industries, manufacturers, and consumers on both sides of the border. The Canadian government has not yet publicly outlined its potential countermeasures, but officials have signaled they are preparing for retaliatory steps.
With the clock ticking and political rhetoric intensifying, businesses and policymakers are bracing for what could be a sharp escalation in Canada-U.S. trade tensions.
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