1 MIN AGO: The U.S. Won’t Start Trade Talks Until Canada Pays. Carney Just Said No …
Donald Trump sparked tensions with Canada after a Truth Social post threatening 100% tariffs and dismissing Prime Minister Mark Carney as “Governor.” This came after Carney criticized the weakening global order and signaled independence from U.S. pressure.
The core issue is that the U.S. is demanding “entry fee” concessions (like changes to dairy, digital policy, and liquor rules) before even starting trade talks under the CUSMA agreement. Canada has already made concessions—like dropping its digital tax—but received nothing in return, so Carney has now firmly said “no more unilateral concessions.”
At the same time, Canada is diversifying. Carney’s trip to China secured trade deals (like reduced tariffs on canola and seafood), showing Canada has alternative options, even if the U.S. remains its main partner.
With a July 1, 2026 deadline approaching (a key review point in CUSMA), both sides face pressure. Canada is betting it can wait longer, especially since U.S. politicians may face economic backlash before midterm elections.