Prime Minister Mark Carney has announced new limits on steel imports, as Canada moves to shield its domestic industry from steep US tariffs imposed by President Donald Trump

The country’s new prime minister, Mark Carney, has been called the “Trump whisperer,” and negotiations have been cordial and professional. But it’s been a wild ride.

An all-too predictable pattern has emerged in US-Canada relations. US president Donald Trump makes Canada “an offer it can’t refuse.” What follows is a national gnashing of teeth, flag-waving, businesses and politicians going patriotic.

Canada is one of the United States' top trading partners, with more than $410 billion of goods crossing into the country last year.

Trump wrote to Carney to inform him that, from August 1, Canada will face a 35 percent import tariff after the two sides failed to reach a deal during the recent pause. The American leader said he would consider revising the 35 percent tariff "if Canada works with me to stop the flow of Fentanyl".

Canada's International Trade Minister said on Thursday that there was interest from both sides to advance trade talks with South American bloc Mercosur, as Ottawa seeks new deals in a push to diversify from the U.

Donald Trump's tariff policy boosts US revenue. Customs duties hit a record $64 billion in the second quarter of 2025. Most nations avoid retaliation, preferring negotiation. China and Canada initially resisted but later retreated.

Trump on Monday said the United States would ship "billions of dollars' worth" of military equipment to NATO members, paid for by the alliance, to be handed over to Ukrainian forces battling grinding Russian advances. Trump had earlier this month suggested NATO would "100 percent" pay for U.S. weapons, which would be sent to Ukraine.