Canada's PM Carney Faces Pressure Amid Trump Tariff Threats

Sat Jul 12 2025 18:02:28 GMT+0300 (Eastern European Summer Time)
Canada's PM Carney Faces Pressure Amid Trump Tariff Threats

Tensions Rise as Trade Negotiations with the US Encounter New Challenges


As Canada’s Prime Minister Mark Carney navigates fraught trade talks with the US, his commitment to secure a fair deal for Canada is being put to the test following President Trump's threats of a hefty tariff on Canadian goods.

In the context of escalating trade tensions, Prime Minister Mark Carney now confronts fresh concerns regarding his ability to contend with President Donald Trump's latest moves, notably a threatening 35% tariff on Canadian imports due to take effect next month. These developments come as both countries engage in critical negotiations that are intended to finalize a new trade agreement.

Carney, who assumed office after promising to adopt a confrontational stance towards US demands and emphasizing a vigorous support for Canadian interests, has made some concessions that have led critics to question his strategy. Following Trump’s threatening posture, Canada recently abandoned its plan to introduce a Digital Services Tax (DST), following pressure from the US administration, which has been interpreted by some as a capitulation to American demands.

Canadian commentators are questioning whether Carney's strategy is effectively addressing the core issues. Robyn Urback categorized the government's approach to the negotiations as resembling a "chicken dance," implying reactive rather than proactive tactics. Meanwhile, professor Blayne Haggart dismissed the effectiveness of the concessions made to Trump, asserting that giving in on the DST appears to have produced no meaningful benefit for Canada.

Despite the tough economic bargaining, many Canadians express a willingness to support Carney, as opinion polls indicate solid backing for his administration. Wildlife adviser Roland Paris cautioned against making premature judgments regarding Canada's strategy with the US, emphasizing that the outcomes of trade negotiations will ultimately determine political ramifications.

In addition to the DST controversy, Canada has tried to mitigate tensions with the US by committing over C$1.3 billion towards border security enhancements and designating a "fentanyl czar" amid ongoing discussions about drug trafficking concerns. However, with Trump's recent tariff ultimatum, Carney's responses have been met with a call for further actions against US pricing strategies on steel and aluminum.

Carney reiterated Canada’s resolve to defend its workers and businesses, committing to continued negotiations beyond the initially set deadline. Thankfully for Canada, products covered under the US-Mexico-Canada Agreement (USMCA) will remain unaffected by the proposed tariffs for now.

In a broader context, the domestic political landscape shows a coalition against Trump's tariff threats. Leaders across various political affiliations, including Conservative head Pierre Poilievre, have rallied to unite in advocating for a fair deal. Experts, including Fen Hampson of Carleton University, highlighted that American consumers could ultimately bear the brunt of the tariffs, suggesting that Canada possesses some bargaining leverage despite its smaller economy.

Amidst the uncertainty, Industry Minister Melanie Joly emphasized the government's commitment to managing negotiations discreetly, arguing that responses to Trump's unpredictability are complex and shared by multiple nations in similar situations.

In this dynamic environment, analysts underline that the ultimate assessment of Carney's approach can only be evaluated based on the final trade agreements secured—and not solely on interim decisions or concessions made during negotiations.

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