WASHINGTON, D.C. – U.S. President Donald Trump publicly questioned whether Canada could meet the August 1 deadline for trade talks, fuelling more tension in the shaky relationship between the countries.
Speaking to the press, Trump said, “Canada’s not really into negotiation. I don’t think they’ll make the August 1 deadline. We’ll see what happens.” His pointed commentary landed at a time when Prime Minister Mark Carney is under pressure for not meeting his campaign promises, especially on housing. Both the uncertainty with the U.S. and growing frustration at home have put Carney’s leadership under the microscope.
Trump’s remarks came after he sent Carney a letter on July 10, warning that all Canadian goods might soon face a sweeping 35 percent tariff if no agreement was reached by August 1. This threat adds to earlier tariffs, such as June’s 50 percent charge on Canadian steel and aluminum and a 25 percent levy on other goods.
Trade between the two countries has already suffered. Trump said these moves were because of Canada’s trade deficit, tight controls on dairy, and the supposed failure to limit fentanyl crossing the border. But CBC News and other outlets report that less than 0.1 percent of fentanyl seized at the U.S. border comes from Canada, based on American data.
Carney Campaigned Against Trump
Carney, who won the April 2025 election campaigning against Trump’s approach, has put much of his team’s trust in Justin Trudeau’s former cabinet members. Dominic LeBlanc, now Canada-U.S. Trade Minister, and Industry Minister Mélanie Joly are key players in these negotiations. But their past struggles with Trump’s hardball tactics have drawn criticism.
During Trudeau’s government, these officials failed to stop sudden U.S. tariffs and even handled Trump’s jab that Canada should become the “51st state.” Some argue that relying on the same team signals a lack of fresh ideas and weakens Canada’s hand at the table.
“They’ve been at this for years and haven’t managed to outmaneuver Trump,” said political scientist Blayne Haggart from Brock University. “Carney promised a tougher approach, but we’re seeing the same faces making the same mistakes.”
Haggart’s take matches the feeling across Canada: an Angus Reid Institute poll found that 45 percent don’t trust Carney’s trade team. Of those, over half question Carney’s leadership, while the rest blame Trump’s unpredictable style for blocking progress.
Carney’s choice to keep Trudeau-era officials has sparked even more debate after talks broke down in June over Canada’s planned Digital Services Tax, a move targeting American tech companies. Carney quickly dropped the tax to please Trump—a move Ontario Premier Doug Ford slammed as giving in too quickly.
“We can’t keep caving to Trump’s demands without getting something in return,” Ford posted on X, urging Ottawa to push back harder. Carney’s willingness to back down, combined with his decision not to match Trump’s steel and aluminum tariffs, makes his government look too willing to compromise.
Fraser Institute Report
As Carney battles on the trade front, Canadians are losing patience with his slow progress on housing. He won April’s election by promising to rein in runaway home prices, especially in cities like Toronto and Vancouver.
He pledged faster building approvals, more construction incentives, and expanded affordable housing. Three months into his term, little has changed. Building numbers are flat, and house prices in Toronto now top $1.2 million on average.
“Carney sold himself as the guy who could fix housing and stand up to Trump,” said Fraser Institute policy analyst Sarah Mitchell. “But we’ve only heard talk so far. The housing crisis is getting worse, and his trade efforts aren’t working.” With few real policy moves and most of his team tied up in U.S. talks, people are starting to lose hope. Polls show Carney’s approval rating slipping from 62 percent in May to 48 percent in July.
Other campaign promises have also stalled. Bill C-5, which was supposed to ease federal limits on trade between provinces, passed in June, but many say it doesn’t go far enough. Provincial rules remain a barrier, and Carney’s government hasn’t shown a clear plan for greater change.
At the same time, Alberta Premier Danielle Smith blasted Carney for not scrapping Trudeau-era laws that she believes block pipeline projects, a key part of diversifying Canada’s export markets. “The Liberals are stuck in the past, and it’s costing us economically,” Smith said.
Failing to deliver a forceful response to Trump has hurt Carney the most. On the campaign trail, he sold himself as the “Trump whisperer,” counting on his experience as a central banker to bring stability.
Promise to Stand Up Against Trump
Early meetings, like his May visit to the White House and hosting Trump at the June G7 Summit, were hailed as successes. But Trump’s latest tariff threats and his brush-off of Canada’s efforts have undercut Carney’s image. “He promised to stand up to Trump, but all we’ve seen is concessions and delays,” said Conservative leader Pierre Poilievre. Carney’s stumbles have helped rally the opposition and shaken public trust.
On July 16, Carney admitted that settling on a tariff-free agreement with the U.S. didn’t look likely. “There is not much evidence right now that any country can secure a tariff-free deal,” he told reporters.
Quebec Premier François Legault said that without a clear strategy, it’s hard to predict the outcome. “You almost have to ask Trump what he wants, and I’m not sure he even knows,” Legault observed. At a premier’s meeting with Carney on July 22, no agreement was reached about how to respond to potential tariffs. Some, like Alberta’s Smith, want to avoid retaliation, while Ford in Ontario is calling for a tougher approach.
With the August 1 deadline approaching, Canada’s negotiators, led by LeBlanc and Carney’s chief of staff Marc-André Blanchard, are in Washington. But there’s little hope for a solution. Trump keeps raising demands, even tying tariffs to drug enforcement and dairy policy. His unpredictable approach has Canadian officials scrambling. “Trump is very, very hard to deal with because it’s so fluid,” Ford admitted.
Carney has stayed firm, saying that Canada won’t accept a “bad deal.” “Our objective is not to reach an agreement at any cost,” he repeated on July 23. Still, with stalled progress on housing, internal trade, and natural resources, and with important trade talks on the edge of collapse, Carney is at a crossroads.
The next few days matter for both Canada-U.S. ties and Carney’s credibility. As Trump uses tariffs to apply more pressure, Canadians are left waiting to see if their prime minister can deliver on his promises or if trust in his leadership will slip further.
