The Tesla Shock Nobody Sees Coming

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Carney Faces Cross-Border Pressure Amid High-Stakes US Trade Talks

Nabaparna Bhattacharya
July 12, 2025

Canadian Prime Minister Mark Carney is under mounting pressure as he navigates contentious trade talks with the United States amid fresh threats from President Donald Trump to impose a 35% tariff on Canadian imports starting August 1.

Trump’s latest warning arrives while both nations are in the midst of hammering out a broader trade agreement--talks that have grown increasingly tense following several concessions from Ottawa.

These include a recent rollback of a proposed Digital Services Tax targeting tech giants, after Washington vowed to end trade talks unless the plan was scrapped, reports BBC News.

Also Read: Trump Targets Mexico, EU With 30% Tariffs

Carney’s approach, once symbolized by a combative “elbows up” hockey metaphor, is now being questioned across the political spectrum.

Analysts and commentators have described his trade posture as inconsistent, with Canadian columnist Robyn Urback likening it to a “chicken dance.” Critics argue that caving on the digital tax and not responding to recent tariff escalations on steel and aluminum undermines his promise of standing firm against U.S. pressure.

While Carney’s government continues to enjoy strong domestic support in polls, some political scientists say the prime minister’s broader strategy--pursuing an expansive trade and security deal--lacks coherence.

Blayne Haggart, a professor at Brock University, said Canada’s recent reversals have accomplished “less than nothing.”

Others, like former government adviser Roland Paris, argue it’s too soon to judge and that the final agreement will determine whether Carney capitulated or played a smart long game.

Trump’s tariff warning letter also revived his criticism of Canadian drug policy, accusing Ottawa of not doing enough to curb fentanyl flow across the border.

Despite the friction, Carney has avoided retaliatory action and reiterated Canada’s commitment to protecting its workers and industries.

The U.S.-Mexico-Canada Agreement remains intact for now, exempting many Canadian goods from the threatened 35% tariff.

Canadian politicians across party lines have presented a united front. Pierre Poilievre, the Conservative leader, pledged full support to secure a strong deal, while British Columbia Premier David Eby emphasized national unity.

Experts, including Carleton University’s Fen Hampson, caution against judging the talks prematurely, pointing out that American businesses would also suffer from the tariffs and that Carney has made moves to diversify trade, including with the EU.

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Image: Shutterstock/Harrison Ha

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