Carney says he and Trump will intensify trade negotiations after US imposes 50% tariffs - AP News

Canadian Prime Minister Mark Carney announced on Tuesday, July 21, 2026, that he and President Donald Trump agreed to deepen and accelerate trade negotiations, one day after the U.S. imposed 50% tariffs on most Canadian goods.
Trump justified the tariffs by claiming Canada has unfairly discriminated against American autos, alcohol, and dairy products, with the new measures set to take effect 30 days from Monday.
Carney pledged that Canada would take all necessary steps to protect its jobs, workers, and farmers, and to make the country stronger, more independent, and more resilient.
The 50% tariffs would exclude energy products, potash, fish, and critical minerals, but would apply to goods previously shielded under the United States-Mexico-Canada Agreement (USMCA).
The 2020 USMCA pact was not renewed by the U.S., triggering fresh negotiations that could extend until 2036, raising concerns of economic disruption, higher inflation, and strained ties between the two nations.
An administration official said Canada was one of the few countries, alongside China, that retaliated against Trump's earlier tariffs and needed to be held accountable, while Trump also floated additional tariffs over Canadian wildfire smoke drifting into the U.S.