Carney says he and Trump will intensify trade negotiations after US imposes 50% tariffs - AP News

What the report says

The Associated Press reports that Canadian Prime Minister Mark Carney said he and U.S. President Donald Trump agreed to accelerate trade talks involving Canada, the United States and Mexico. Carney spoke in Ottawa on Tuesday, July 21, 2026, one day after Trump announced 50% tariffs on most Canadian goods, with the new duties set to begin 30 days from Monday.

According to AP, Trump said Canada had treated American autos, alcohol and dairy products unfairly. The planned tariffs would not apply to energy products, potash, fish or critical minerals, but would cover some goods that had been protected under the United States-Mexico-Canada Agreement. AP reported that the U.S. did not renew that 2020 pact, opening a new negotiating period that could extend for years.

Carney said Canada would work to protect jobs, workers and farmers, and he planned to speak virtually with provincial premiers. Several premiers criticized the tariff move. British Columbia Premier David Eby said the measures would hurt families, Saskatchewan Premier Scott Moe said tariffs raise costs on both sides of the border, and Ontario Premier Doug Ford called for Canada to respond more forcefully.

AP also reported that Trump separately raised the possibility of additional tariffs tied to wildfire smoke from Canada drifting into parts of the United States, while accusing Canada of poor forest management. The dispute matters because higher tariffs could raise costs, disrupt cross-border supply chains and further strain a trade relationship that has long been central to both economies.