Canada ready for US trade deal that benefits both, Carney says

September 3, 2026 at 10:18 PM2 min

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Canadian Prime Minister Mark Carney said on Thursday in Thunder Bay, Ontario, that Canada is ready to sign a trade deal with the United States that benefits both countries. He added that any agreement would need stability and credibility. His comments come after trade negotiations collapsed last month and the US imposed 50 percent tariffs on $20bn worth of Canadian goods.

Key Facts

Carney said Canada is ready to sign a trade deal with the US that benefits both countries, adding that any agreement would need stability and credibility.
The US has imposed 50 percent tariffs on $20bn worth of Canadian goods, and Ottawa's retaliatory tariffs on a similar amount will come into effect next week.
The US has threatened 50 percent tariffs on all Canadian cars and car parts from January 1.
The US accounted for 66.35 percent of Canada's total exports in July, down from 69.39 percent in June.

Trade Negotiations Collapse

Trade negotiations between the US and Canada collapsed last month when talks were down to the wire. Since then, the US has imposed 50 percent tariffs on $20bn worth of Canadian goods. Ottawa's retaliatory tariffs on a similar amount will come into effect next week. The US has also threatened 50 percent tariffs on all Canadian cars and car parts from January 1.

Carney's Response

Carney dismissed recent comments by US Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent that Canada walked away from a trade deal because of domestic politics. He said, "I don't think, with all respect, appointed, unelected cabinet members in the United States are experts on Canadian politics." Carney suggested there had been a recent softening in the US approach to any trade deal that could spur further discussions. He described the previous US attitude as an "our way or the highway" approach before talks broke down last month.

Shifting Export Dependence

The US is Canada's largest trading partner, and nearly 80 percent of its exports went there historically. Since Trump unleashed a wave of tariffs on the country last year, Ottawa has been working on reducing that dependence. The US accounted for 66.35 percent of Canada's total exports in July, down from 69.39 percent in June.