Trump’s global tariff pause is supposed to expire soon. What’s at stake for Canada?

With U.S. President Donald Trump’s three-month pause on his sweeping global tariffs set to expire in just a few days, the pressure is on for countries to negotiate deals to avoid facing levies. Canada, in particular, is at risk as Trump has not closed many deals during this time period. The U.S. has only reached agreements with Britain and Vietnam so far, leaving Canada vulnerable to potential tariffs.

The U.S. President invoked the International Emergency Economic Powers Act (IEEPA) to apply worldwide tariffs and earlier fentanyl tariffs on Canada and Mexico. Despite a ruling by the U.S. Court of International Trade that Trump exceeded his authority with this law, the tariffs remain in effect as the decision is under review by a federal appeals court.

As the deadline approaches, trade experts warn that Canada could be targeted by Trump if deals are not reached. The Trump administration has suggested pushing back the deadline to give countries more time to negotiate, but the risk remains for Canada. Trump has shown a willingness to impose tariffs whenever he sees fit, without facing significant political or economic consequences.

While there is an opportunity for Canada to expand trade with European and Asian allies, the country must act quickly to leverage existing trade agreements and diversify its trading partners. Prime Minister Mark Carney and International Trade Minister Maninder Sidhu have made this a top priority, but challenges remain in key markets like the U.K., India, and China.

Canada-U.S. trade talks are ongoing, with a deadline set for July 21. The deadline provides an opportunity for Canada to secure a deal with the U.S. and hold the Americans’ attention as they negotiate with other countries. While there may be skepticism about reaching a full agreement by the deadline, Trump’s tendency to declare victory even with an incomplete deal could work in Canada’s favor.

Overall, Canada must be proactive in seeking new trade opportunities and strengthening existing relationships to mitigate the risks posed by Trump’s tariffs and ensure economic stability in the face of uncertainty.