By Canadian Press

Trump lowers expectations of trade deal with Canada as tariff deadline looms

Jul 31, 2025 | 8:09 AM

WASHINGTON — U.S. President Donald Trump is dampening expectations of a deal with Canada materializing at the last minute as his tariff deadline looms.

In a post on social media, the president says it will be very hard to make a deal with Canada after Prime Minister Mark Carney on Wednesday announced Ottawa intends to recognize a Palestinian state.

Trump previously sent a letter to Carney threatening to impose 35 per cent tariffs if Canada doesn’t make a trade deal by Friday.

The White House has said those duties would not apply to goods compliant with the Canada-U.S.-Mexico Agreement on trade, better known as CUSMA.

While Trump continues to boast about his tariffs on the world, the president’s main tool to realign global trade will face a hurdle in court today.

The U.S. Court of Appeals for the Federal Circuit will hear from businesses and states that say Trump’s use of a national security statute to implement the duties is beyond his powers as president.

This report by The Canadian Press was first published July 31, 2025.

Kelly Geraldine Malone, The Canadian Press