HUNTSVILLE, Ont. — Dampening expectations of a U.S. trade pact by President Donald Trump’s Aug. 1 deadline, Prime Minister Mark Carney says it’s time for Canada to look to other countries for opportunities.
“We’re working positively for a deal. We’ll take stock if there isn’t one that works,” he said Tuesday after a three-hour meeting with provincial premiers at their annual Council of the Federation conference, where first ministers are plotting their next moves amid dwindling hopes of averting broader Trump tariffs. Â
“But they’re complex negotiations, and we use all the time that’s necessary,” he added on a hot, sunny patio at Deerhurst Resort after briefing provincial leaders on the status of talks.
Prime Minister Mark Carney downplayed the importance of a looming Aug. 1 deadline in trade talks with the U.S. on Tuesday, saying the objective is to get the best possible deal for Canadians. Carney was invited to join the premiers in Ontario's cottage country this week as they gathered to discuss eliminating internal trade barriers and U.S. President Donald Trump's threat to impose 35 per cent tariffs on a wide variety of Canadian goods on Aug. 1. (July 22, 2025)
“We will agree (on) a deal if there’s one on the table that is in the best interests of Canadians, just as the United States will look for the best interests of the U.S.”
Given Trump’s unpredictability — a factor many premiers, including Doug Ford, repeatedly mention — Carney said other nations are eager to boost their business with Canada.Â
“Our phone is ringing off the hook from other countries who want to do more. I’ve had over 80 bilaterals (meetings) with foreign leaders since I became prime minister,” he told reporters.
“A number of premiers have been on major trade missions … We’re going to focus more and more of our time on those positive aspects.”
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Ford, who chairs the council of premiers, was tight-lipped when asked for details from Carney’s presentation behind closed doors. It followed a long chat the two had Monday night in front of the fireplace at Ford’s cottage near Huntsville, where the prime minister slept following a dinner of grilled steak and chicken with the premiers.
“I don’t want to jeopardize the negotiations … but, again, if I can say this, Donald Trump is very, very hard to deal with just because he’s so fluid,” Ford said. “It’s constantly moving with him.”
New Brunswick’s Susan Holt said the premiers encouraged Carney “not to make a deal at all costs” and to strategically use “exposure points” the provinces have flagged for Canadian negotiators to improve their prospects — such as the fact her province supplies much of the jet fuel used by the American military on the eastern seaboard.
“We’re seeing the U.S. react to some of Canada’s decisions. They’ve reacted very sensitively to the fact that Canadians aren’t travelling in their country right now,” Holt said, pointing to recent complaints from U.S. Ambassador to Canada Pete Hoekstra that this is a reason Trump feels Canada is “nasty.”Â
“They’re reacting to the fact that we don’t have their booze on their shelves, and they’re irritated,” she added. “We need that irritation to get bigger and louder.”
Carney is also turning the federal government’s attention to infrastructure projects of national interest, with an office to evaluate proposals from the provinces to be set up in September. Ideas that benefit entire regions or the whole country will take precedence.Â
“We will be focusing on initiatives that are within our own control for the benefit of Canadians,” the prime minister said, citing as one example a proposal for more “linkages” of British Columbia’s electricity grid with the Yukon and Northwest Territories to open up mining of critical minerals, which can also benefit Alberta.Â
Competition is fierce, said Nova Scotia Premier Tim Houston, who is pushing a massive offshore wind energy project.
“There’s lots of potential projects and good, good ones,” he added. “Everyone is waiting for the major projects office to open.”
While Ford is advocating “dollar for dollar, tariff for tariff” retaliation if Trump imposes more levies, Carney suggested he’s taking a wait-and-see approach while Alberta Premier Danielle Smith and Saskatchewan’s Scott Moe have advised against such reprisals.Â
“Everything’s on the table,” Ford maintained, including a return of the tax he briefly placed on electricity exports to Michigan, New York and Minnesota months ago — which had quickly caught the attention of Trump and U.S. Commerce Secretary Howard Lutnick.Â
“You don’t want to trigger a complete (trade) war. But the only thing, I believe, with President Trump and Secretary Lutnick that I’ve seen, you have to be tough. If you’re weak, they will run us over.”
“We’ll see how this deal goes,” Ford added, referring to the trade negotiations.Â
The premiers’ meeting with Carney included a briefing from two former Canadian ambassadors to the U.S., David McNaughton and Gary Doer, over a working lunch.Â
Earlier in the day, Ford welcomed Moe into a memorandum of understanding with Ontario and Alberta to build new pipelines, rail lines and other energy infrastructure to move oil and critical minerals east and west.
Ford said such projects will be essential if the trade dispute with Trump interferes with the existing Line 5 pipeline that brings oil from the west to Ontario through Michigan, but Green Leader Mike Schreiner took issue with that.Â
“Instead of using this time with the premiers to discuss real solutions to an escalating trade-war and affordability crisis, he is wasting time peddling projects that will only waste taxpayer dollars and accelerate climate change,” Schreiner said.
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