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Carney's Trump Trade Standoff: Canada's Tough Road Ahead

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When Prime Minister Mark Carney addressed Canadians after walking away from trade talks with the United States, he rallied 41 million citizens behind his defiance, saying it avoided a bad deal that would have compromised Canadian sovereignty. That public support allowed him to negotiate fiercely and navigate a high-risk economic moment.

Walking away is a classic negotiating tactic, but now the enthusiastic backing that bolstered Mr. Carney's choices could become an obstacle when talks restart. He must tap into Canadians' pragmatism about the economic consequences if the trade war persists, and risk that those angered today could feel misled if a return to discussions is poorly handled.

A brief sign of de-escalation came when Jamieson Greer, the U.S. trade representative, told the CBC that demands about Canadian content on U.S. streaming platforms were not deal breakers. Dominic Le Blanc cautiously welcomed the comment, but hours later President Trump signed an executive order renaming Lake Ontario “Lake America” and called Canadian leadership “nasty.”

Officials say a cooling-off period is needed. Canada's countertariffs take effect Sept. 8, with further U.S. levies beginning Jan. 1. A seasoned negotiator, Mr. Carney is unlikely to wait until real economic strain hits. For now, the Canadian economy registered 3.3 percent growth in Q2, the fastest since early 2023.