Carney expects U.S. trade talks to 'intensify' ahead of deadline and 35% threat
Prime Minister Mark Carney says he expects trade discussions with the U.S. will "intensify" ahead of the Aug. 1 deadline to secure a new agreement.
Carney made his comments on his way into the Prime Minister's Office where he will hold a virtual cabinet meeting to discuss President Donald Trump's latest tariff threat.
Trump said in a letter to Carney last week that the United States will put a 35% tariff on Canadian goods starting Aug. 1, but the White House says that new tariff won't apply to goods that are compliant with the Canada-U.S.-Mexico Agreement on trade.
Canada has yet to respond formally to the latest threat, or to Trump's recent moves to impose lofty tariffs on copper imports and double existing levies on steel and aluminum.
Carney and Trump agreed last month to work toward a new trade and security pact by July 21, but the U.S. president unilaterally pushed back the timeline to secure a deal.
The prime minister is also set to meet with Canada's premiers next week.
READ: Inflation rises to 1.9% in June as vehicle price hikes accelerate
Manufacturers report less tariff impact in May compared to April
Statistics Canada says fewer manufacturers report being affected by tariffs in May than in April.
The agency says total manufacturing sales were down 0.9% to $68.7 billion in May, marking the lowest level since January 2022.
But it says respondents to its survey indicated U.S. tariffs were having a smaller impact on Canadian manufacturing in May than in April.
Nearly half of manufacturers reported tariff hits in May, about 10 percentage points lower than the month before when the bulk of the U.S trade levies took effect.
The May data doesn't capture U.S. President Donald Trump’s move to double steel and aluminum tariffs in June, nor his recently announced plans to impose 50% tariffs on copper imports.
Manufacturers told Statistics Canada in May that they were dealing with tariffs impacts mostly through higher prices and changes in demand.
