Canada-U.S. Trade Talks Continue Amid Auto Tariffs, Digital Tax Removal

Canadian Prime Minister Mark Carney is actively engaged in trade negotiations with U.S. President Donald Trump amid a tariff dispute significantly affecting Canada's automotive sector. The U.S. has imposed a 25 percent tariff on Canadian-made vehicles and a 50 percent duty on steel and aluminum, prompting retaliatory duties from Canada, and contributing to economic challenges such as job losses and a potential recession in Ontario. Carney is meeting with Canadian auto industry leaders to address concerns, including the sustainability of electric vehicle mandates under current policies. A breakthrough occurred when Canada rescinded its 3 percent digital services tax on U.S. technology companies, a move demanded by Trump that led to the resumption of stalled trade talks. Both leaders have committed to reaching a trade deal by July 21, aiming to resolve the tariff conflict and stabilize economic relations. Despite the resolution on the digital tax, Canada continues to pursue an international tax framework with G7 allies, indicating ongoing efforts to balance trade interests and economic policies.