Trump Threatens Tariffs as U.S.-Canada Trade Talks Stall: Is a Trade War Imminent?

Trade negotiations between the United States and Canada have reached a critical impasse, with President Donald Trump repeatedly casting doubt on the possibility of a new trade deal before the looming August 1 deadline. Trump has warned that if no agreement is reached, Canada could face steep tariffs—potentially as high as 35%—on key exports to the U.S. While the U.S. has recently struck deals with the European Union and Japan, Canada remains on uncertain footing, prompting concern among Canadian officials and industry leaders. Prime Minister Mark Carney has signaled that Canada will not accept a bad deal, even if it means missing the deadline. The escalating rhetoric and lack of progress have fueled fears of a trade war, with significant economic implications for both countries.