Prime Minister Mark Carney said that Canada could accept certain tariffs as part of a future trade deal with the United States, News.bg reports.
“There is not much indication right now that the Trump administration would be willing to completely waive tariffs in any agreement“, Carney said on Tuesday, quoted by CBC News and the BBC.
In a statement to journalists before a cabinet meeting in Ottawa, he noted that all of President Trump's trade negotiations so far have included tariffs.
We recall that last week, US President Donald Trump announced the introduction of a new 35 percent tariff on Canadian goods, effective from 1 August.
The trade war between Canada and the United States began when Trump took office in January. Since then, the US president has imposed both targeted tariffs on Canadian products and global tariffs that have severely damaged key Canadian industries. Canada has responded by introducing its own countermeasures.
Carney did not specify whether he was prepared to accept tariffs as an inevitable part of any agreement with the United States. At the G7 summit in June, he stressed that he would only sign a deal "that is in Canada's best interest."
He also warned that additional countertariffs could be imposed if Ottawa and Washington fail to reach an acceptable agreement.
The new 35% tariff represents an increase from the existing 25%, although with significant exceptions. In addition, the Trump administration has already imposed:
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A 50% global tariff on aluminum and steel imports,
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A 25% tariff on all cars and trucks not made in the U.S.,
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A 50% tariff on copper imports, which will take effect next month.
Canada sells about 75% of its exports to the U.S. and is a major auto manufacturing hub as well as a major supplier of metals. This makes U.S. tariffs particularly damaging to the Canadian economy.
Despite the tensions, much of the cross-border trade between the U.S., Canada, and Mexico remains exempt from additional tariffs under the Canada-U.S.-Mexico-United States Agreement (CUSMA). According to US media, the agreement remains in effect for now.
A recent report by the Royal Bank of Canada shows that exports to the US have declined since April, but compliance with CUSMA requirements has increased. About 91% of Canadian exports to the US have crossed the border duty-free, according to data from the US Census Bureau.