Prime Minister Mark Carney in Ottawa on July 21. (Justin Tang/The Canadian Press via AP)
key takeaways:
- Prime Minister Mark Carney said on July 21 that he and President Donald Trump agreed to accelerate trade talks after the U.S. announced 50% tariffs on most Canadian goods.
- The tariffs would include some goods already protected under the USMCA, although economists said they would affect about 5% of Canadian exports to the United States.
- Canadian leaders criticized the tariffs and discussed responses, while the White House said the measures would take effect in 30 days pending negotiations.
VANCOUVER, British Columbia – Canadian Prime Minister Mark Carney said July 21 that he and Donald Trump have agreed to speed up negotiations on a trade deal between Canada, the U.S. and Mexico, a day after the U.S. President announced 50% tariffs on most Canadian goods.
Carney’s comments come after Trump announced that Canada has unfairly discriminated against American autos, liquor and dairy products. The new tariffs were scheduled to come into effect 30 days from July 20.
Read more: Canada cancels joint bridge-opening event with US
“I spoke with the U.S. president this morning and we agreed to deepen and intensify our conversations over the next few weeks,” Carney said in Ottawa. “Canada will do whatever is necessary to support our jobs, our workers, our farmers, and build Canada stronger, freer and more resilient.”
The tariffs could spark a new wave of economic chaos, with the risk of higher inflation and a further deterioration in relations between the two countries, which previously had warm, close relations before Trump’s return to the White House. Administration officials previewing the July 20 action said Canada was the only nation other than China that retaliated against Trump’s previous tariffs and should be held accountable.
America did not renew USMCA
The new 50% tariffs will not include energy products, potash, fish and critical minerals, but will include goods previously protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA. That 2020 trade agreement was not renewed by the US, triggering a new set of negotiations that could last until 2036.
My statement on the United States Administration’s intention to impose new tariffs on Canadian goods: pic.twitter.com/wl8JtbQjyC
– Mark Carney (@MarkJCarney) 20 July 2026
Carney said he planned to meet virtually with the country’s prime ministers during the day. British Columbia Premier David Eby was outspoken in his criticism of Trump and the proposed tariffs.
“This seems like an increasingly desperate and callous approach to our relationship with our country,” he said in Charlottetown, Prince Edward Island, where the prime minister and regional leaders were meeting. “There is no doubt that this will harm families in British Columbia.”
Aby said Trump is wrong to think he can “threaten us all he wants.”
“I feel sorry for Americans,” he said. “If you can’t make friends with Canada, you certainly don’t have friends anywhere in the world, and that’s a very lonely place.”
Saskatchewan Premier Scott Moe said the tariffs hurt both countries.
“When tariffs are implemented it increases the cost to families and the cost of doing business on both sides of the border,” he said. “These tariffs do nothing to make the North American economy more competitive.”
Prime Minister urges Canada to be more aggressive towards Trump
Ontario Premier Doug Ford said Canada must stand up to Trump.
“We always seem to be on the defensive,” he said. “We need to be aggressive. There is no need to be constantly on the defensive with President Trump. We need to stand up to the bully, and we need to impose tariffs on tariffs by all means.”
With President Trump threatening to impose tariffs on Canadian alcohol, Canada’s Prime Minister is taking action to allow Canadian consumers to purchase more wine, beer, cider and spirits from across the country.
Together, we are breaking down internal trade barriers to build better… pic.twitter.com/3W5cdgYXhO
– Doug Ford (@fordnation) 21 July 2026
Trump told reporters in the Oval Office on July 21 that he loved Canadians but claimed the country needed the United States to survive. “Canada has been very tough on us for many years and no other president has done anything about it,” he said.
Trump said the new tariffs are separate from his threats to impose additional tariffs on Canada because of wildfire smoke that has affected millions of people in the U.S. Great Lakes, Northeast and Mid-Atlantic regions. He reiterated his claim that Canada is not managing its forests properly.
Canadian economists say the tariffs are more narrowly focused than before and will affect about 5% of Canada’s exports to the United States. The wide range of goods includes honey, wine, cement and hockey sticks.
Robert Kavcic, a senior economist at the Bank of Montreal, said in a note to clients that the proposed tariffs would cover about $28 billion Canadian ($19.8 billion US) worth of annual Canadian exports to the United States. That’s 0.8% of Canada’s economy, he said.
Cavcic said it appears chemicals, plastics, electronics and industrial equipment are the biggest targets in the new tariffs, followed by consumer goods and forestry products. Miscellaneous manufacturing machinery and agricultural or food products are excluded from the list.
Controversy over ban on sale of American liquor
A disappointment for the US is that eight Canadian provinces have banned the sale of American liquor at provincially operated liquor stores. Carney said it is up to the provinces to decide whether they want to continue restrictions.
Abi said the citizens of his province support the ban.
“There’s no chance that American wine is going back into British Columbia,” he said.
