Canadian Prime Minister Mark Carney has indicated that a trade agreement with the United States remains possible, provided the terms safeguard the competitiveness of Canada's automotive and steel industries. The Canadian government is actively pursuing a "durable" arrangement with Washington concerning trade and tariffs.

"When the Americans are ready, we are ready to sit down and reach a deal," Carney told reporters in Thunder Bay, Ontario. However, he reiterated that Canada will not sign any agreement that significantly undermines the competitive position of its domestic auto and metal sectors.

"The terms for our auto industry, steel sector, and aluminum industry must be competitive, and that competitiveness includes recognition of Canadian content," Carney stated. "We are, without a doubt, the United States' largest auto customer. This is an integrated market, so that reality needs to be reflected in the terms."

The negotiations between the two nations aimed at reducing tariffs and trade barriers collapsed on August 21, prompting US President Donald Trump to impose a 50% tariff on $20 billion worth of Canadian goods the following day. In response, Canada is preparing to enact new retaliatory tariffs against the US on September 8.