US-Canada trade talks: US Ambassador to Canada Pete Hoekstra has expressed confidence in the prospect of a new trade agreement between the two nations, ahead of high-level negotiations involving US President Donald Trump and Canadian Prime Minister Mark Carney. Speaking to reporters, Hoekstra said he anticipates a “win-win” outcome from the talks, reports Bloomberg.
“We’re going to get through this,” said Hoekstra at a Fourth of July event in Ottawa. “When we are done, we are going to be stronger and better than when we began.”
The ambassador, a former US congressman from Michigan, a state heavily reliant on trade with Canada, said both sides are addressing core issues that would make trade “freer, fairer, and better for both countries.”
US-Canada tariff disputes
Hoekstra’s remarks come in the backdrop of lingering tensions stemming from Trump’s first term in office, when the US imposed sweeping tariffs, including 50% on imported steel, aluminium, cars, and trucks. While a North American trade agreement was signed during that period, the tariff measures, particularly against Canada and Mexico, led to a sharp deterioration in bilateral relations.
Canada, one of the largest exporters of steel and aluminium to the US, retaliated with counter-tariffs targeting billions of dollars’ worth of American consumer and industrial goods. Under Prime Minister Carney’s leadership, Ottawa eventually lifted those countermeasures, despite Washington keeping its tariffs intact, signalling a willingness to reset the trade relationship.
Trump-Carney set deadline for July 21
According to Bloomberg, Trump and Carney have agreed on a July 21 deadline to finalize the framework of a new trade consensus. The talks are expected to address a range of contentious issues, from tariffs to digital taxation and industrial supply chains.
The trade discussions were briefly paused last week due to US objections over Canada’s digital services tax. However, after Ottawa announced it would scrap the measure, negotiations resumed. Carney described the move as part of a “larger negotiation strategy” aimed at securing a broader deal with Washington.
US, Canada businesses feel the heat
While both governments strike an optimistic tone, the prolonged trade dispute has strained businesses and consumers in both countries. Companies dependent on cross-border supply chains have reported rising costs and disruptions, adding urgency to the ongoing negotiations. Additionally, Trump has sent out letters to 170 countries informing them of their tariff rates. The new rates will take effect starting August.