Canada says ready to seal US trade pact that benefits both sides

In Thunder Bay, Prime Minister Mark Carney announced that Canada stands ready to conclude a trade pact with the United States that would serve the interests of workers, families and businesses on both sides, provided the United States also moves forward. He stressed that any agreement must be stable and credible, and dismissed recent comments by US Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent suggesting Canadian politics drove the breakdown.

Carney said the US has recently eased its hardline approach, opening space for renewed talks after last month’s negotiations collapsed and 50% tariffs were placed on $20 billion of Canadian exports, with matching Canadian tariffs to take effect next week and a threat of 50% duties on Canadian automobiles from Jan 1. He also revealed a C$4.7 billion investment to build and maintain more than 300 Via Rail passenger cars in Quebec and Thunder Bay, shifting production away from the United States.

Shortly after, Donald Trump posted on Truth Social warning that Canada’s economy would suffer if it continued to oppose his administration. Statistics Canada data show the US share of Canadian exports fell to 66.35% in July, down from 69.39% in June.