OTTAWA – In a whirlwind of diplomatic activity, world leaders have signed a series of unprecedented trade agreements in response to President Donald J. Trump’s aggressive tariff policies, which have reshaped global commerce.
World leaders have signed several major trade agreements in the wake of President Donald J. Trump’s tough tariff actions, which have shaken up international trade. The United States has reached new deals with countries such as China, the United Kingdom, and several European nations.
These agreements target trade imbalances and aim to support U.S. manufacturing. Meanwhile, Canada, a long-time key trading partner of the U.S., has not taken part in these new pacts. Prime Minister Mark Carney has chosen to cool things off by suspending Canada’s tariffs on American goods.
The White House has called these new trade deals “historic wins.” Among the highlights is an agreement with China, announced on May 12, 2025. This deal cuts China’s tariffs by 115 percent, while the U.S. keeps a 10 percent tariff in place. Talks were held in Geneva, and the agreement puts a stop to China’s retaliatory measures.
It also sets up future discussions to allow more American exports into China. Similar agreements with the UK and select EU countries have cut tariffs on industrial products, including cars, in return for more access to the U.S. market.
These moves are aimed at reducing the U.S. trade deficit with China, which reached $295.4 billion in 2024, and at supporting U.S. industry. All of this fits with Trump’s “America First” approach to trade.
Trump’s Tariffs
These agreements follow a period of high tension. In February 2025, Trump started a sweeping tariff plan, placing 25 percent tariffs on shipments from Canada and Mexico, and 10 percent on imports from China, citing worries about national security, illegal immigration, and fentanyl trafficking.
Soon after, the U.S. added a 25 percent tariff on cars and auto parts, starting April 3, and a 20 percent tariff on goods from the EU. The moves rattled global markets, wiping out nearly $6 trillion from the S&P 500 in just four days in April.
But on April 9, Trump eased some tariffs for 90 days. This shift helped start fresh talks with more than 75 countries interested in new trade deals.
Canada, however, is not part of these recent agreements. Mark Carney, who became Prime Minister on April 28, 2025, after running on a wave of anti-Trump support, first promised to hit back at U.S. tariffs.
On April 3, he announced $60 billion (C$) in tariffs on American products, including dairy, meat, grain, and other goods. He called Trump’s tariffs a betrayal of the close U.S.-Canada partnership and reminded Americans that Canada is the biggest export market for over 40 U.S. states.
Despite his early tough talk, Carney has shifted course. On May 15, 2025, he announced a six-month pause on tariffs that hit U.S. imports used by Canadian manufacturers, healthcare, and food processors. Carney also made sure Canadian auto plants could keep running by exempting automakers from new tariffs. Experts say this change points to the real pressure on the Canadian economy.
Canada Stepping Back
Canadian exports to the U.S. dropped by 6.6 percent in March 2025, while exports to other countries jumped nearly 25 percent. The pause is meant to help Canadian businesses hurt by U.S. tariffs, especially in the auto sector, where the new 25 percent U.S. duty on Canadian-made parts has made it harder for companies to keep their supply chains running smoothly.
“Canada is picking a practical approach instead of a fight,” said Candace Laing, president of the Canadian Chamber of Commerce. “We haven’t signed new deals yet, but cutting tariffs on U.S. goods shows we’re open to talks and want to protect our economy.”
Carney’s decision has led to mixed opinions at home. Ontario Premier Doug Ford is cautiously hopeful, noting that U.S. officials hinted they might ease auto tariffs. But Conservative Leader Pierre Poilievre said the move doesn’t go far enough and called for an immediate renegotiation of the USMCA.
This trade agreement, which comes up for review in 2026, remains a major issue. Carney says Trump’s tariffs take advantage of gaps in the deal, and changes are needed.
On the world stage, other leaders have called out Trump’s tariffs. EU Commission President Ursula von der Leyen has proposed scrapping all tariffs on industrial goods, while German Chancellor Olaf Scholz warned that the tariffs would end badly for everyone. Despite these objections, Trump’s approach has pushed some countries, including Japan and South Korea, to start talks with the U.S. to avoid higher tariffs.
With the G7 summit in Canada coming up in June 2025, Carney faces growing pressure to work with Europe and the UK to push back against U.S. tariffs. He has suggested a possible free trade deal with the UK, pointing out that almost all trade between the two countries is already tariff-free.
For now, Canada’s absence from the wave of new trade deals highlights a careful balancing act: protecting the country’s independence and stability while dealing with the unpredictable fallout from Trump’s trade policy.
