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Politics

Canada’s Mark Carney Faces Backlash as Trade Deal Hopes Fade

Jeff Tomas
Last updated: July 20, 2025 12:59 am
Jeff Tomas
5 months ago
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Canada’s Mark Carney Faces Backlash as Trade Deal Hopes Fade
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OTTAWA – Prime Minister Mark Carney, once praised as the figure who could turn Canada’s fortunes around, now faces sinking support and rising frustration inside his party. His government is stuck in a worsening economic downturn, and his approval numbers are dropping fast.

Mark Carney’s election campaign cast him as a skilled negotiator, ready to secure strong trade agreements with the US even as he faced President Donald Trump’s strict tariffs. That promise has faded.

He recently admitted that a tariff-free agreement with the US is very unlikely, angering voters who believed his campaign promises. On top of this, Carney’s big infrastructure plans have stalled. During a recent meeting with First Nations leaders, he said there are no active plans for major projects, which left many people disappointed.

Canada’s economy is struggling, with more people out of work, slow growth, and a public fed up with new taxes. Critics are also upset with Carney for taking time off and suspending Parliament during a critical trade dispute with the US, leaving many feeling the country lacks direction.

A Fading Hope for a Trade Deal

Carney’s campaign was all about confidence. Last spring, he told CBC he would negotiate tough with Trump using experience gained from leading both the Bank of Canada and the Bank of England. He promised to protect Canadian jobs and businesses and stand firm against American tariffs.

But on July 15, 2025, Carney changed his position in front of reporters. He said there’s little sign that the US will agree to a deal without tariffs, meaning Canada will likely have to accept extra costs on its exports.

The shift drew instant criticism from across the aisle. Conservative Leader Pierre Poilievre called Carney’s change of tune another one-sided concession to Trump. On social media, Poilievre slammed him for surrendering before talks had even finished.

Many Canadians online echoed the anger, pointing to increased tariffs and a loss of the digital services tax, which targeted big US tech companies like Amazon and Google. When Trump stopped trade talks in June, calling Canada’s 3% tax on digital services a “direct attack” on American firms, Carney quickly dropped the tax.

Canada lost about $3 billion in revenue from this move, but didn’t get any new trade promises in return. This only deepened doubts about his leadership.

Mark Carney’s Broken Promises on Infrastructure

Carney also won votes by promising new infrastructure that would strengthen the economy and help offset US tariffs. In June, he detailed plans to speed up pipelines, nuclear projects, and new trade routes, telling voters these steps would help Canada become the G7’s top economy. Many people, especially workers hit by US tariffs on steel and aluminum, pinned their hopes on these projects.

But in a recent meeting with Indigenous leaders, Carney revealed that none of these plans are moving forward right now. He made this announcement as Indigenous representatives raised concerns about land and water protection.

Their response was swift, with many criticizing the government’s lack of detail about involving First Nations in any future projects. Opposition parties accused Carney of misleading voters about his intentions.

Conservatives joked that Carney now has “nothing in the pipeline—literally.” Without a clear direction for infrastructure, doubts are growing over Carney’s ability to deliver on his economic pledges, especially with steel production down by 30% since US tariffs began.

Announcing $70 million in training and support for steelworkers and $1 billion from the Strategic Innovation Fund has done little to settle these concerns.

Economic Troubles and Tax Fatigue

Canada’s economy is showing signs of serious trouble. The jobless rate is now at 7%. The International Monetary Fund has lowered its 2025 outlook for Canada, blaming the continued effects of US tariffs.

The Canadian Steel Producers Association says steel output is down 30%, and the outlook remains bleak as US tariffs of 50% on metals and 25% on vehicles keep biting.

Facing shrinking budgets and growing financial pressure, Carney is now looking at cutting government spending, a move that has shocked many Liberals. During his campaign, he attacked Conservatives for pledging to cut public service jobs, claiming they cared little for public programs.

Now, sources say his government is planning to trim public sector jobs to help manage the fallout from the trade conflict. “Canadians can’t afford more taxes,” Carney said to reporters, signalling a possible turn toward cost-cutting measures.

Many Liberal supporters feel this betrays their party’s values. “Carney promised growth and investment, not cuts,” said a senior party strategist. Social media users shared this disappointment, blaming Carney for failing to deliver a budget and mishandling talks with Trump.

Polls from inside the Liberal Party show Carney’s popularity falling, with some MPs quietly questioning his leadership.

Holiday Break and Closed Parliament Cause Outrage

Perhaps most upsetting to many is Carney’s choice to take a holiday and suspend Parliament while Canada faces a trade fight. As Trump threatened new 35% tariffs starting August 1, Carney spent time off near Ottawa, with Parliament still closed.

Opposition leaders and the public sharply criticized him for not staying present during what he once called “the greatest crisis of our lifetimes.” Bloc Québécois leader Yves-François Blanchet accused Carney of leaving Canadians on their own when they most needed help.

Conservative MP Andrew Scheer poked fun at Carney’s “terrible start” on social media, pointing to the lack of progress on tariffs, pipelines, and inflation. Suspending Parliament has only added to the anger, with many believing Carney is avoiding responsibility as his team struggles to respond to growing US trade demands.

Mark Carney’s quick slide in public opinion highlights how tough leading a country can be during economic trouble. His image as a skilled dealmaker and forward-thinker has faded as Trump’s tariffs and Canada’s economic problems pile up. Attempts to shift focus to other projects, like restricting steel imports from countries other than the US or investing in Arctic infrastructure, have not eased worries for most Canadians.

With the deadline for new US tariffs just around the corner, Carney’s leadership is under intense pressure. As his party grows more divided and his approval numbers drop, he must find a way to win back confidence and deal with a tougher trade environment. For now, Canadians are dealing with a struggling economy, possible cuts to public services, and a leader whose major promises remain out of reach.

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