Carney’s new position raises the question of how Canada will respond to Trump’s tariffs, since the PM has delayed many retaliatory tariffs — which raise the price of American goods purchased by Canadians — pending the outcome of trade negotiations with the U.S. before Canada’s new deadline of Aug. 1.

President Donald Trump announced a new set of duties on Canadian goods that were not covered by existing sectoral tariffs.

“The major measures of core inflation both remained stubbornly stuck right around three per cent,” Douglas Porter, chief economist at BMO Capital Markets, said in a note, adding that the share of goods in the CPI basket that remain elevated hasn’t continued to improve, either.

Given that Canada’s retaliatory tariffs against the U.S. are having no discernible impact on the American economy and increase the cost of living for Canadians, what is the value of continuing them?

President Donald Trump announced a 35% tariff on Canadian imports, starting Aug. 1, the latest letter to a trade partner that threatens high rates.

Meanwhile, Trump announced a 35% blanket tariff on imports from Canada, up from 25% announced in February, the ABC reported. Trump justified the tariffs as necessary to manage the opioid crisis, which he said was partly because of fentanyl being smuggled into the US from Canada.

President Donald Trump said the duties will take effect Aug. 1 while decrying the country’s retaliatory levies to U.S. tariffs.

Trump insiders maintain that it would make little sense — politically or from a policy standpoint — for the president to offer any further extensions on trade.