After long insisting that Canada could avoid Trump tariffs through talks, Mark Carney now says that is unlikely for any nation.

Canada has quietly been working to cut a deal with its largest trading partner ahead of U.S. President Donald Trump’s Aug. 1 tariff deadline. For The National, CBC’s Jonathon Gatehouse breaks down what that agreement could look like — and what it could cost the country.

Carney’s comments come after U.S. President Donald Trump threatened Canada, in a letter posted on Truth Social, to reach a trade agreement before August 1 or face higher tariffs of 35%.

Canada's annual inflation rate rose to 1.9% in June, meeting analysts' expectations, as increases in the price of automobiles, clothing and footwear pushed the index higher, data showed on Tuesday.

The pace of inflation sped up slightly in Canada to 1.9 per cent in the month of June, Statistics Canada said Tuesday. This comes after Statistics Canada said the pace of inflation held steady in May at 1.

According to Statistics Canada data released on Tuesday, Canada’s inflation rate increased to 1.9% per year in June, up from 1.7% in May. The increase was primarily driven by rising prices for durable goods,