US President Donald Trump has said he does not expect to reach a trade deal with Canada, after he gave the country a deadline of 1 August to carve out an agreement.
“We haven’t really had a lot of luck with Canada,” Trump told reporters ahead of his trip to Scotland on Friday. “I think Canada could be one where there’s just a tariff, not really a negotiation.”
His remarks come after Canadian Prime Minister Mark Carney signalled earlier this week that Canada “will not accept a bad deal” and rush into an agreement.
Canada is among several countries given an August deadline by Trump as part of his global tariff strategy and push to renegotiate deals with US trade partners.
Trump has said that US importers buying in goods from Canada will face a 35% tax if no deal is reached before the 1 August deadline.
But that levy will not apply to goods compliant under an existing North American free trade agreement between Canada, the US and Mexico.
Trump has already imposed a blanket 25% tariff on imports of certain Canadian goods, as well as a 50% tariff on aluminium and steel imports and a 25% tariff on all cars and trucks not built in the US.
The US president has argued that these will boost American manufacturing and protect jobs.
The move has disrupted the global economy, and prompted warnings from critics that products could become more expensive for US consumers.
Canada sells three-quarters of its products to the US and its auto industry is deeply intertwined with its southern neighbour – making the impact of tariffs even more significant.
The two countries have been engaged in intense trade and security negotiations since Prime Minister Carney took office in May.
Last week, Trump told the BBC that he was positive a deal could be reached with Canada. “I think it’s going to work out very well,” he said of the ongoing negotiations during the 15 July interview.
But Canadian officials have recently downplayed the possibility of reaching a deal soon.
After a two-day visit to Washington, intergovernmental affairs minister Dominic LeBlanc told reporters on Thursday that negotiators “have a lot of work” in front of them.
He described the ongoing talks as “productive” and “cordial”, but reiterated that Canada will take “the time necessary to get the best deal”.
Trump has announced trade agreements with other countries in recent days, including Japan, which he said will face a lower tariff rate of 15% in exchange for a $550bn (£409bn) investment in the US.
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