Former U.S. President Donald Trump has announced plans to impose a 35% tariff on goods from Canada, set to take effect on August 1, despite ongoing efforts to reach a new trade agreement before a self-imposed deadline.
The announcement was made via a letter published on Trump’s social media platform, Truth Social, accompanied by threats of broader tariffs of 15% or 20% on goods from multiple trade partners.
Canadian Prime Minister Mark Carney has responded, stating his government will continue to protect Canadian workers and businesses as negotiations continue toward the looming deadline.
Reports indicate that Trump has sent over 20 similar letters to other U.S. trade partners this week, and has also indicated impending tariff announcements targeting the European Union.
As with the letter addressed to Canada, the proposed tariffs outlined in these communications are slated to be implemented by August 1.
Certain Canadian goods already face a 25% tariff, and the nation has been significantly impacted by previous steel, aluminum, and auto tariffs imposed by the Trump administration, though exemptions currently exist for goods compliant with the North American free trade agreement.
U.S. media sources suggest that the Canada-United States-Mexico Agreement (CUSMA) exemption is expected to remain in effect, even amidst this latest tariff threat.
Previously, Trump imposed a global 50% tariff on aluminum and steel imports, alongside a 25% tariff on all cars and trucks not manufactured within the United States.
A 50% tariff on copper imports has also been recently announced, scheduled to take effect next month.
Canada, which sends approximately three-quarters of its goods to the United States, serves as a major auto manufacturing hub and metals supplier, making these tariffs particularly detrimental to those sectors.
According to the letter, the proposed 35% tariffs are separate from the existing sector-specific levies.
Trump stated in the letter that “there will be no tariff if Canada, or companies within your country, decide to build or manufacture products within the United States.”
He also linked the tariffs to what he termed “Canada’s failure” to curb the flow of fentanyl into the U.S., as well as existing Canadian levies on U.S. dairy farmers and the trade deficit between the two nations.
“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,” Trump stated.
Trump has previously accused both Canada and Mexico of enabling “vast numbers of people to come in and fentanyl to come in” to the U.S.
In response, Prime Minister Carney stated on X that Canada has made significant progress in “stopping the scourge of fentanyl” in North America, and that his government remains committed to working alongside the U.S. to protect communities in both countries.
Data from U.S. Customs and Border Patrol indicates that approximately 0.2% of all fentanyl seizures occur at the Canadian border, with the vast majority confiscated at the U.S. border with Mexico.
Earlier this year, Canada also announced increased funding for border security and appointed a fentanyl tsar in response to Trump’s concerns.
Canada has been engaged in intense trade negotiations with the U.S. in recent months, aiming to reach a new trade and security agreement.
During the G7 Summit in June, Prime Minister Carney and Trump expressed their commitment to reaching a new deal within 30 days, setting a deadline of July 21.
In the letter, Trump threatened to increase levies on Canada should it retaliate. Canada has already imposed counter-tariffs on the U.S., and has indicated that further measures will be taken if a deal is not reached by the deadline.
In late June, Prime Minister Carney removed a tax on large U.S. technology firms after Trump labeled it a “blatant attack” and threatened to call off trade talks.
Prime Minister Carney stated that the tax was dropped as “part of a bigger negotiation” on trade between the two countries.
On Friday, Canada’s industry minister Melanie Joly declined to comment on whether Ottawa was doing enough to advocate for Canadians, stating: ‘We’re not going to negotiate in public.”
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