Canada Ready for Trade Deal with U.S.

Canadian Prime Minister Mark Carney stated his government stands ready to sign a trade agreement with the United States that helps both nations. He insisted any new pact must bring stability and credibility to the relationship. Speaking in Thunder Bay on Thursday, Carney told reporters that a deal working for Canadian workers also works for American families and businesses. They are prepared to sit down when the Americans are ready.

Trouble erupted last month when negotiations collapsed at the very end. The United States then slapped 50 percent tariffs on $20 billion worth of Canadian goods. Ottawa plans retaliatory measures on a similar amount starting next week. Washington also threatened 50 percent duties on all Canadian cars and parts from January 1.

Carney pushed back against claims that domestic politics forced Canada to walk away. He told a questioner he did not think unelected cabinet members in the US were experts on Canadian affairs. Recent signals suggest a softening approach from Washington, which could spark new talks. Carney noted the US stopped arguing issues right up until the last hour before the breakdown. Now they do not care about Canadian language or culture as much. If they did not care, they should have removed those elements from the deal. He said this was good news and welcomed the change.

President Donald Trump posted on Truth Social shortly after Carney spoke. The US leader called it very good for Canadian politicians like Mark Carney to make him the enemy. Trump warned the country's economy would collapse under such pressure. He claimed the outcome would be worse than anything that has ever happened to a Canadian politician.

The United States remains Canada's largest trading partner historically, taking nearly 80 percent of exports. Since Trump unleashed tariffs last year, Ottawa has worked hard to reduce this heavy dependence. Statistics Canada data showed US shares in total exports fell to 66.35 percent in July. That number dropped from 69.39 percent in June and 72.64 percent a year ago. Import reliance on the US narrowed to 59 percent over the last twelve months compared with 62 percent in 2024.

Carney also announced spending of 4.7 billion Canadian dollars, or $3.4 billion, for new rail cars. This money will build and maintain more than 300 Via Rail passenger vehicles in Canada. The plan uses facilities in Quebec and Thunder Bay instead of importing from the US. This shift marks a move toward local production and less reliance on American manufacturing.