?? Carney Admits Some U.S. Tariffs Might Be “Inevitable”

July 27, 2025

Prime Minister Mark Carney has acknowledged that U.S. tariffs may be unavoidable—even within a negotiated trade deal—marking a moment of realism in ongoing negotiations with Washington.

Speaking to reporters in mid-July, Carney said there is “not a lot of evidence” that any country has managed to fully avoid tariffs in its dealings with the U.S., even under formal trade agreements (CBC). That signals a shift from earlier expectations that a renewed bilateral agreement could preserve tariff-free trade for Canadian goods.

The comments come as other countries rush to secure deals with Washington—such as the U.K., Vietnam, and Japan—each accepting some level of tariff burden in exchange for predictable market access. Japan’s agreement, in particular, trades reduced tariffs on cars and electronics for multi-year commitments on agricultural tariffs, illustrating the compromises partners are making to secure stability. Canada now faces a similar calculation: how much tariff exposure it can live with while still protecting critical sectors like steel, aluminum, and auto parts.

Carney’s comment is both sobering and strategic—acknowledging what many hoped to downplay: that peaceful trade relations with the U.S. might cost us in duties. If tariffs are inevitable, the focus must shift to minimizing their impact and extracting value elsewhere. That means a renewed urgency for trade diversification, interprovincial reform, and investing in Canadian-made strength. Because if Canada ends up with tariffs in a deal, we should at least get something tangible in return—and have a Plan B ready.

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