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Carney says he and Trump agreed to intensify trade talks

The new levies target goods from honey to hockey sticks as Canada and the United States push to renegotiate the trade pact.

  • On Tuesday morning, Prime Minister Mark Carney spoke with President Donald Trump and they agreed to intensify negotiations on CUSMA in the coming weeks, following the U.S. announcement late Monday of 50 per cent tariffs on multiple Canadian goods set to begin in 30 days.
  • American officials cited provincial bans on U.S. alcohol, Canada's supply-managed dairy system, and quotas on certain American vehicles as justification for the tariffs; President Trump invoked Section 338 of the Tariff Act of 1930, which empowers the president to impose duties when a country disadvantages American exporters.
  • Canada submitted comprehensive proposals to modernize the North American trade pact, while Trade Minister Dominic LeBlanc convened an advisory council Tuesday afternoon; Carney said provincial alcohol bans were individual decisions requiring any reversal to be part of an overall agreement.
  • Carney kept the door open to retaliatory measures if negotiations fail, saying Canada will examine "all options" in response; he emphasized the first objective is securing a comprehensive agreement consistent with CUSMA.
  • With 30 days before tariffs take effect, Carney and Trump face a compressed negotiation window as the administration's invocation of Section 338 of the Tariff Act of 1930 signals a firm legal foundation for the threatened duties on trade imbalances.
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TRT World broke the news in Istanbul, Türkiye on Tuesday, July 21, 2026.
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