Prime Minister Mark Carney said he spoke with U.S. President Donald Trump Tuesday morning and they agreed to intensify negotiations on the Canada-U.S.-Mexico Agreement on trade in the coming weeks.
The discussion between the leaders came the day after Trump again threatened Canada with punishing tariffs.
"As always, Canadians — governments, business, labour — will stand together to build Canada strong and to have a trading relationship with our North American partners that benefits everyone," Carney said in Ottawa on Tuesday.
The U.S. announced late Monday a plan to impose a 50 per cent tariff on multiple Canadian goods, ranging from honey to hockey sticks, starting in 30 days.
American officials said the new levies are a response to provincial bans on U.S. alcohol, Canada's supply managed dairy system and quotas on American cars.
Carney said Canada-U.S. Trade Minister Dominic LeBlanc plans to convene the advisory council he chairs on Tuesday afternoon.
The prime minister said Canada has made a series of comprehensive and detailed proposals on modernizing the Canada-U.S.-Mexico-Agreement on trade, better known as CUSMA, in response to the Trump administration's trade strategy.
The Trump administration said earlier in July that it would not be renewing the trade agreement. That decision triggers rolling annual reviews for up to 10 years, at which point CUSMA would expire unless all parties agree to an extension.
Trump on Tuesday told reporters in the Oval Office that he loves the "people of Canada" but claimed the country needs the United States to survive.
"Canada's been very, very tough on us over the years, for many years, and no other president's done anything about it," Trump said.
Trump added that the new tariffs are separate from his threats to hit Canada with additional levies due to wildfire smoke. He repeated his claim that Canada is not managing its forests properly.
This report by The Canadian Press was first published July 21, 2026.
— By Kelly Geraldine Malone in Washington
