CANADA VIBES NEWSROOM · ÉDITION DU SOIR | EVENING EDITION — Thursday, July 30, 2026, 7:06 PM ET
The clock is ticking toward the August 1 deadline set by U.S. President Donald Trump, who is threatening 35% tariffs on a portion of Canadian imports if no new trade deal is reached.
A Canadian delegation led by Trade Minister Dominic LeBlanc is in Washington Thursday for a final push of talks before the deadline. Prime Minister Mark Carney has given his clearest indication yet that the two countries may not land a deal in time.
In a letter posted to Truth Social, Trump warned tariffs could climb further if Canada retaliates. Under the current threat, the 35% rate would apply to goods not covered by the Canada-United States-Mexico Agreement (CUSMA).
The trade fight comes against an already fragile economic backdrop: Canada’s real GDP contracted in three of the last four quarters through the first quarter of 2026, meeting the technical definition of a recession. Bank of Canada Governor Tiff Macklem has warned that further interest rate hikes remain possible if fuel costs push broader inflation higher.
Separately, Carney on Wednesday dismissed a proposal — floated by Ontario Premier Doug Ford, among others — to use Canadian energy exports as leverage in the talks. “I can understand conceptually, but I don’t see the value,” he said while in Alberta.
What to watch
Whether a deal is announced before August 1; how the Canadian dollar and markets react; any Canadian retaliatory measures if the 35% tariff takes effect; further talks between LeBlanc and his U.S. counterparts.
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