Failure to reach deal by Aug. 1 could trigger 35 percent tariffs on Canadian goods.

President Donald Trump meets Canadian Prime Minister Mark Carney in the Oval Office on May 6, 2025. AP Photo/Evan Vucci
U.S. President Donald Trump said on July 31 it would be “very hard” to reach a trade agreement with Canada after Prime Minister Mark Carney announced plans to recognize a Palestinian state.
Trump’s remarks come one day ahead of the Aug. 1 deadline for a new tariff agreement between the two nations. Canada is the second-largest U.S. trading partner, buying $349.4 billion of U.S. goods in 2024 and exporting $412.7 billion to the United States.