Trump warned that any country that does not strike a deal before Friday will face higher tariffs
- The US raised tariffs on Canada from 25% to 35% citing Canadian inaction and retaliation
- Tariffs on Canadian steel, aluminium and copper now stand at 50% under current measures
- Canada is the second-largest investor in the US, with a population of 40 million people
Days after the United States slapped Canada with 35 per cent tariffs, raising it from the previous 25 per cent, Canadian Prime Minister Mark Carney on Tuesday said that he will speak with US President Donald Trump "when it makes sense".
The increased tariff, which the White House said was the result of Canada's "continued inaction and retaliation," comes after Trump told reporters that Canadian Prime Minister Mark Carney reached out ahead of an August 1 tariff deadline, but no conversations between the two took place.
Trump has warned that any country that does not strike a deal with the US before Friday will be subjected to higher tariffs imposed on goods.
At a press conference in British Columbia, Carney said, "Canada is the second-largest investor in the United States today in the world. We have 40 million people."
"That puts in context the state of the relationship," he said. "Without an agreement, there will be less by definition."
The tariffs are not compliant with CUSMA - the Canada-United States-Mexico agreement on trade. The tariff rates for Canadian steel, aluminum and copper stand at 50 per cent.
However, Trump said on Thursday that the Canadian Prime Minister called him regarding a trade deal. "We haven't spoken to Canada today. He's (Carney) called and we'll, we'll see," Trump told reporters during an event at the White House before the 35% rate was announced.
On Tuesday, Canadian Finance Minister Francois-Philippe Champagne, said that the country is looking for trade partners it can "trust", in a meeting with Foreign Affairs Minister Anita Anand and Mexico's President Claudia Sheinbaum.
Carney also told reporters that last week, Trump reaffirmed his commitment to the United States-Mexico-Canada Agreement. The agreement also gives Canada tariff-free access to 85 per cent of Canadian exports to the US.
