High-Stakes Negotiations: Canada's Trade Dilemma with the U.S.

The Canadian negotiating team is grappling with difficult trade talks with the United States. After the U.S. raised tariffs on Canadian goods to 35%, the team is prepared to abandon negotiations if no beneficial deal is reached, according to an adviser to Prime Minister Mark Carney.

Flavio Volpe, involved in the talks, emphasized Canada's commitment to resolving the issues despite a lack of progress. Tensions have risen as the U.S. criticizes Canada for not addressing its concerns about fentanyl smuggling and trade barriers. Former Prime Minister Justin Trudeau had imposed countermeasures, which remain a point of contention.

While Canada's current prime minister, Mark Carney, aims to stand up to U.S. pressure, divisions exist over whether to continue defensive tactics. The Business Council of Canada's Goldy Hyder has called for a strategic reassessment, pointing out the fragility of the Canadian economy in the face of these challenges.

(With inputs from agencies.)