Carney says Canada won't settle for a 'bad deal' on US tariffs

The Canadian prime minister said he was still negotiating in advance of a 1 August trade deadline set by Donald Trump.

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"Our objective is not to reach a deal whatever it costs," Carney told reporters in Ontario. "We are pursuing a deal that will be in the best interest of Canadians."

US importers buying in goods from Canada will face a 35% tax if no deal is reached before the deadline.

The neighbours are among each other's largest trading partners, but have been in a standoff after Trump returned to the White House earlier this year and unleashed a sweeping programme of tariffs.

He has argued that these will boost American manufacturing and protect jobs. But the move has disrupted the global economy, and prompted warnings from critics that products could become more expensive for US consumers.