With less than a week until the self-imposed August 1 trade deadline, U.S. President Donald Trump confirmed today that negotiations with Canada have stalled — and that a formal agreement may not materialize at all.
“We don’t have a deal with Canada,” Trump told reporters during an impromptu press briefing on the White House lawn Friday morning. “We haven’t been focused on it.”
Trump emphasized that Canada might ultimately have to accept steep new tariffs rather than reach a negotiated agreement. “I think Canada could be one where they’ll just pay tariffs. It’s not really a negotiation,” he said. The comments mark a sharp contrast with Trump’s tone toward other trade partners.
Progress Elsewhere: EU, China, and Australia
While Canada remains at an impasse, Trump highlighted recent progress with other global partners:
European Union: Trump said his administration is “likely” to reach a finalized agreement with the EU before August 1.
China: The White House claims that the “confines” of a trade deal with Beijing are already in place.
Australia: Trump celebrated a breakthrough on agricultural exports, citing Australia's removal of longstanding beef import restrictions. “We’ll be sending them so much beef,” he said.
The administration’s strategy appears to involve unilateral tariff threats, followed by private negotiations — a method Trump described bluntly: “When those letters go out – they’re a page and a half – that means they have a deal. That is a contract, essentially.”
Canada Got a Letter, But No Deal
Canada did receive one of those letters — outlining Trump’s proposed 35% tariff on Canadian goods, scheduled to take effect August 1. However, talks have not progressed meaningfully since.
Dominic LeBlanc, Canada’s Minister for U.S. Trade, said on Thursday that discussions in Washington remain “complex” and acknowledged that an agreement by the deadline is unlikely. LeBlanc met with U.S. Commerce Secretary Howard Lutnick and a bipartisan group of senators in what Ottawa described as a constructive session.
Despite Trump’s rhetoric, LeBlanc indicated that Canada is willing to miss the deadline if it means securing a better long-term outcome. He is scheduled to return to Washington next week to resume discussions.
Tariffs Already in Place — and More Coming
In addition to the looming 35% tariffs, Canada is already contending with a series of U.S. tariffs imposed by the Trump administration:
Steel and Aluminum: Tariffs imposed earlier in Trump’s term remain in effect.
Automobiles: U.S. tariffs on Canadian-made vehicles continue to strain bilateral trade.
Copper: New duties on copper imports are expected to take effect on August 1.
The full impact of these tariffs could ripple across key Canadian industries, especially if Canada responds with its own retaliatory measures — a move that may further escalate tensions.
With the deadline just days away, pressure is mounting on both sides to either strike a deal or prepare for a new phase of economic confrontation.
The Business Brief Executives Actually Trust
In a world of sensational headlines and shallow takes, The Daily Upside stands apart. Written by former bankers and veteran journalists, it delivers crisp, actionable insights that top execs use to make smarter decisions. Over 1M readers — boardrooms to corner offices — trust it every morning. Join them. Free, no fluff, just business clarity.