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globzette.com > Blog > US > US-Canada Trade Deal Likely to Include Some Tariffs
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US-Canada Trade Deal Likely to Include Some Tariffs

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Last updated: July 16, 2025 10:19 am
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Published: July 16, 2025
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US-Canada trade negotiations
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The ongoing alternate negotiations between the U.S. and Canada propose that tariffs may stay a key factor in any future deal between the 2 international locations. Prime Minister Mark Carney recently indicated that Canada may be forced to just accept certain tariffs as a part of the settlement, particularly given the U.S. management’s record of including tariffs in change talks. Despite ongoing tensions, consisting of the latest announcement of a 35% tariff on Canadian goods set to start in August, the U.S.-Canada relationship is still formed by the terms of the US-Mexico-Canada Agreement (CUSMA), which gives some relief. However, with tariffs nevertheless affecting vital Canadian industries like vehicle production and metal exports, Canada faces hard choices in balancing trade pursuits with country-wide priorities.

Contents
What’s the Current State of US-Canada Trade?How Are US Tariffs Affecting Canada?What Is the Path Forward for the US-Canada Trade Deal?Final Thoughts: Navigating US-Canada Tariffs in Trade Talks

What’s the Current State of US-Canada Trade?

The U.S. and Canada were embroiled in a change dispute seeing that Trump took office in January, with both aspects imposing price lists. Most recently, President Trump announced a brand new 35% tariff on Canadian goods, set to take effect on August 1. This move escalates tensions and, in addition, complicates the change courted between the two nations, which closely rely upon the border.

In reaction, Canada has imposed its personal countermeasures. Prime Minister Carney has kept away from declaring whether or not he would receive the price lists in a brand new deal. However, at some point of the G7 summit in mid-June, he emphasized that Canada could simply comply with a deal that serves its national interests. Here is the link to our article on Trump’s Tariff Tensions

How Are US Tariffs Affecting Canada?

The price lists imposed by means of the U.S. have had sizeable impacts on Canadian industries, especially the car production and metals sectors. Canada is a major dealer of metals and a vehicle manufacturing hub, making the U.S. tariffs especially destructive. Trump’s price lists have covered a 50% levy on aluminum and steel imports, as well as a 25% tariff on vehicles and vans no longer made inside the U.S. A recent addition to this is a 50% tariff on copper imports, which is ready to take effect next month.

Despite the tariffs, much of the change among Canada, the U.S., and Mexico remains exempt because of the USA-Mexico-Canada Agreement (CUSMA), which replaced NAFTA. According to reviews, around ninety-one percent of Canadian exports to the U.S. hold to cross the border obligation loosely, helping to soften the blow from the tariff impositions.

What Is the Path Forward for the US-Canada Trade Deal?

As the trade talks between the U.S. and Canada continue, both sides are navigating a complex landscape of economic interests and international policies. According to a recent Royal Bank of Canada report, Canada’s exports to the U.S. have declined since April, although compliance with the new trade agreement, CUSMA, has increased. President Trump has expressed confidence that the ongoing trade negotiations will lead to a favorable outcome for both nations, suggesting that “things are going to work out very well.” Here is the link to our article on the Canada-Mexico tariff clash.

Final Thoughts: Navigating US-Canada Tariffs in Trade Talks

The ongoing dialogue about US-Canada tariffs underscores the challenges in balancing the needs of both nations while protecting national interests. Both countries face economic pressures, and the path to a resolution remains unclear. As the situation unfolds, Canada’s willingness to accept some US-Canada tariffs may become a crucial factor in striking a fair and sustainable deal with the U.S.

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