OTTAWA– Mark Carney took charge as Canada’s Prime Minister in April, assuring voters he would bring stability to the country’s economy and strengthen ties with the United States. Carney’s background leading the Bank of Canada and Bank of England gave many hope that he could handle tough trade challenges.
Still, just a few months in, his government could not reach a trade agreement with the United States before President Donald Trump’s August 1 deadline. Now, Canada faces steep 35% tariffs on certain exports, raising fresh doubts about whether Carney’s approach is any different from Justin Trudeau’s.
Missed Deadlines and Strained Talks
The trade clash picked up steam after President Trump, posting on Truth Social on July 11, 2025, announced he would hike tariffs on Canadian goods from 25% to 35% starting August 1. He blamed Canada for not taking stronger action to stop fentanyl at the border and criticized Canada’s previous trade countermeasures.
After what seemed like promising talks at the G7 summit in June, where both leaders gave themselves a month to strike a deal, negotiations fell apart. The Canadian government, once hopeful for a July 21 resolution, ended up pushing the deadline and ultimately missed it.
Carney responded on X, underlining Canada’s commitment to the CUSMA agreement and pointing out that only a small share of fentanyl intercepted in the U.S. comes from Canada. These points, though, did nothing to sway Trump, who moved ahead with the 35% tariffs on goods outside CUSMA.
Existing tariffs also remain: 50% on steel and aluminum and 25% on cars. Many experts have called the move excessive, warning that higher prices and supply shortages could hit businesses and consumers on both sides of the border.
Tariffs Have a Big Impact on Canadian Businesses
With 75% of its exports going to the U.S., Canada is already feeling the strain. The new tariffs, together with earlier ones, put huge pressure on key sectors like autos, steel, aluminum, lumber and copper. In 2023, Canada sent $9.3 billion in copper abroad, with the U.S. buying more than half. Extra costs are squeezing profits everywhere, and auto plants in Ontario face some of the harshest blows, especially for vehicles not covered by CUSMA.
Small and medium businesses are under even more stress. Laura Hensley, who runs a mid-sized auto parts company in Ontario, said plain and simple, “The tariffs could kill off companies that are barely hanging on.” She’s thinking about cutting staff or even moving operations to the U.S. Countless businesses share her concerns. The Canadian Chamber of Commerce projects GDP could take a 2-3% hit, raising fears of a possible recession if nothing changes soon.
Carney’s team has promised support for local jobs and is encouraging Canadians to buy domestic products. There’s also talk of new investments to help companies stay competitive and plans to find new markets in Europe and Asia. These steps, though, won’t help right away. Professor Blayne Haggart at Brock University put it simply: “Trading with Europe or Asia takes time. The U.S. is just too important right now.”
Growing Disappointment
Many Canadians are frustrated by the lack of progress. Carney won on a promise of steady leadership and skill with world leaders, with some even calling him the “Trump whisperer.” Still, his move to drop a proposed digital services tax on U.S. tech firms in hopes of smoothing talks didn’t work. Now, critics say his strong talk has faded, and he’s giving in too much.
Michael LeBlanc, who owns a business in Toronto, supported Carney in April. Now he’s had enough. “Carney was supposed to help us, but it’s like nothing has changed from before,” he said. On X, others express their anger too. User @MarcNixon24 wrote, “Mark Carney hasn’t won a single thing for Canada. Tariffs are up. U.S. relations are worse.” Another user, @Lukathor, blamed Carney’s handling of the situation and said Liberal supporters were at fault.
No Break from Liberal Strategy
The tariff fight has shone a brighter light on Carney’s similarities with the Trudeau era. When Trudeau resigned in March after poor poll numbers, he left behind a record of disputes with Washington and his own set of tariffs on U.S. goods.
Carney has stuck with much of the same approach, focusing on CUSMA and local economic programs. This has led to claims that little has changed for the better.
Pierre Poilievre, leader of the Conservatives, criticized Carney’s response. Poilievre calls the tariffs “unfair” and says all Canadian exports should be tariff-free. Public opinion seems to suggest Poilievre’s party could benefit from voter frustration, with the next election looking favourable for the Conservatives.
Every day, Canadians are already feeling the pinch. Higher costs for groceries, vehicles and other goods will soon reach most households as businesses try to recover their losses. The National Bank of Canada points out that energy exports, a big part of Canada’s trade surplus with the U.S., also face a 10% tariff, so energy bills will likely rise too.
Carney’s government has pitched new infrastructure plans, including more pipelines, to counter the economic blow. These have drawn sharp criticism from Indigenous groups and environmental advocates, who say such projects ignore long-term risks. At the same time, Canada’s retaliatory tariffs against the U.S. could make the trade fight drag on, with little sign they’ll solve much.
There’s a strong sense of let-down across the country. Sarah Nguyen, a retail worker from Vancouver, summed up the feeling: “We picked Carney because we thought he’d stand up to Trump.
Things are worse now.” With no deal in sight and economic worries growing, the shine has worn off Carney’s early days, and Canadians are left to handle the fallout of missed opportunities and an uncertain path forward.
