Trump and Carney to Talk Trade as U.S.-Canada Tensions Rise

U.S. President Donald Trump and Canadian Prime Minister Mark Carney are set to have a phone call in the next few days to tackle growing trade disputes, a Canadian official said Sunday. This comes after the U.S. slapped a 35% tariff on Canadian goods not included in the U.S.-Mexico-Canada Agreement (USMCA).

Dominic LeBlanc, Canada’s trade minister handling U.S. relations, shared a hopeful outlook on CBS News’ Face the Nation. “We’re encouraged by the conversations with Secretary Lutnick and Ambassador Greer, but we’re not yet where we need to go to get the deal that’s in the best interest of both economies,” he said.

The U.S. announced the tariff on Friday, partly blaming Canada for not doing enough to stop fentanyl smuggling, which it says fuels America’s opioid crisis. Carney pushed back, noting that Canada only accounts for 1% of U.S. fentanyl imports and is working hard to crack down further. The tariff is the latest chapter in a trade clash that kicked off when Trump returned to the White House earlier this year.

• Trump and Carney to Discuss Trade Amid Rising U.S.-Canada Tariff Tensions
• Canada Responds to U.S. 35% Tariff as Leaders Plan High-Stakes Call
• Trade Talks Loom as U.S. Links Canadian Tariffs to Fentanyl Dispute

LeBlanc believes there’s still a chance to strike a deal that could lower tariffs and give businesses more confidence to invest across the border. “We think there is an option of striking a deal that will bring down some of these tariffs,” he said.

The upcoming Trump-Carney call follows Canada’s recent move on July 30, 2025, to recognize Palestinian statehood, which has stirred some diplomatic waves. With trade and security issues now tangled up, both leaders are under pressure to find common ground.

Also Read: Tim Cook Says AI Is as Transformative as Internet, Pledges Investment

The U.S. and Canada rely heavily on each other’s economies, making these talks critical. A resolution could ease tensions and strengthen ties, but for now, both sides are still working toward an agreement. People on both sides of the border are watching closely to see what happens next.