President Trump has announced that he will implement a 35% tariff on Canadian goods beginning August 1, despite the fact that the U.S. and Canada are nearing a self-imposed deadline to negotiate a new trade agreement.
The news was shared via a letter posted on Truth Social, which also included threats of broad tariffs of 15% or 20% against most trading partners.
Trump’s letter read: “As you will recall, the United States imposed tariffs on Canada to deal with our nation’s fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our country. Instead of working with the United States, Canada retaliated with its own Tariffs.”
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with Your Country.”
“As you are aware, there will be no tariff if Canada, or companies within your country, decide to build or manufacture products within the United States,” Trump stated. “Canadian products sent into the United States, separate from all Sectoral Tariffs.”
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35 per cent that we charge,” the letter adds.
In response to Trump’s letter, Prime Minister Carney wrote on X:
“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1. Canada has made vital progress to stop the scourge of fentanyl in North America.”
“We are committed to continuing to work with the United States to save lives and protect communities in both our countries. We are building Canada strong. The federal government, provinces and territories are making significant progress in building one Canadian economy. We are poised to build a series of major new projects in the national interest. We are strengthening our trading partnerships throughout the world.”
According to the U.S. Department of Commerce, Canada is the top buyer of U.S. exported goods, importing $349 billion in 2024.
U.S. Customs and Border Protection data shows that roughly 0.2% of all fentanyl seizures entering the U.S. occur at the Canadian border.
By CEO NA Editorial Staff
