Overview

• President Trump said he does not expect a trade agreement with Canada by the August 1 deadline and threatened 35 percent tariffs on all non-USMCA imports.
• Prime Minister Mark Carney and Trade Minister Dominic LeBlanc are leading intensive negotiations in Washington to broaden exemptions under the US-Mexico-Canada Agreement.
• Ottawa’s announcement that it will recognize Palestinian statehood has diminished Trump’s willingness to concede before the tariff deadline.
• A panel of 11 judges at the US Court of Appeals for the Federal Circuit began hearing a challenge to Trump’s authority under the International Emergency Economic Powers Act.
• Canadian businesses have rerouted supply chains so that roughly 30 percent of exports now go to non-US markets, limiting exposure to potential US duties.