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Jul 21, 2026 4:13 PM - Connect Newsroom - Ramandeep Kaur with files from The Canadian Press

Carney says Trump agreed to accelerate tariff talks as Canada weighs response

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Prime Minister Mark Carney speaks with reporters in Ottawa after confirming a phone call with U.S. President Donald Trump on the latest tariff dispute. (Photo: The Canadian Press)

Prime Minister Mark Carney says he spoke with U.S. President Donald Trump by phone on Tuesday morning about the latest tariff dispute, confirming the two leaders discussed measures announced by the United States.

Speaking to reporters in Ottawa, Carney said the proposed U.S. tariffs violate the Canada–United States–Mexico Agreement (CUSMA). He said Trump agreed to accelerate discussions in the coming weeks as both countries seek to address the trade dispute.

Asked whether Canada is considering retaliatory tariffs, Carney said all options remain on the table if the proposed U.S. tariffs take effect within the next 30 days. He added that he will consult with Canada's provincial premiers before making any decisions.

According to the Trump administration, the proposed 50 per cent tariffs are a response to restrictions imposed by some Canadian provinces on U.S. alcohol products, Canada's dairy supply management system, and quotas affecting U.S.-made vehicles.

Meanwhile, representatives of the U.S. alcohol industry said they welcome the administration's recognition of the economic impact caused by Canadian provincial restrictions on American liquor. However, they also warned that additional tariffs could significantly disrupt trade between the two countries.

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