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USA July 21, 2026

Carney, Trump Agree to Intensify Latest Trade Talks

Carney, Trump Agree to Intensify Latest Trade Talks

U.S. trade officials announced a 30‑day notice of new 50% tariffs on Canadian exports, marking the first use of Section 338 of the U.S. Tariff Act. The move is part of an ongoing trade dispute that has escalated tensions between the two countries.

Prime Minister Mark Carney met with President Donald Trump on Tuesday to discuss the tariffs. During the conversation, the two leaders agreed to intensify diplomatic talks and begin negotiations immediately.

Carney stated that the primary goal of the discussions is to secure a comprehensive agreement that benefits both nations and aligns with the Canada‑United States‑Mexico Agreement (CUSMA). He emphasized that the negotiations will focus on maintaining and modernizing the trade framework.

Prime Minister Mark Carney speaks to journalists about U.S. President Donald Trump’s new 50% tariff threat in the Parliamentary Precinct in Ottawa July 21, 2026

The Prime Minister’s Office issued a statement condemning the tariffs as a violation of CUSMA. It highlighted Canada’s proposals to resolve the dispute and modernize the agreement, and expressed readiness to intensify discussions in the coming weeks.

Opposition Leader Pierre Poilievre criticized the U.S. move as unjustified, noting that Mexico was not subject to the new tariffs. He warned that the levies would raise prices for Americans and harm Canadian workers.

Poilievre called for a united Canadian response, urging the immediate convening of the International Trade Committee. He stressed the importance of protecting Canadian workers and preserving tariff‑free trade.

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, advised Ottawa to remain calm and avoid panic. He urged the government to avoid hastily adopting new schemes in response to the tariffs.

Volpe described the negotiations as a challenge against a tough actor, noting that the

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