U.S. President Donald Trump has threatened to slap a 35 per cent tariff on Canadian imports starting August 1, raising tensions between the two countries just weeks ahead of a previously agreed negotiation deadline. In a letter addressed to Prime Minister Mark Carney and posted on social media Thursday night, Trump signaled a new hardline stance on trade and security.
The letter appears to set a revised deadline for bilateral talks, despite both countries having committed to finalizing a new economic and security agreement by July 21. Trump warned that if Canada fails to act on halting the flow of fentanyl into the U.S., the punitive tariffs would be imposed as planned. However, he added that if Canada takes “meaningful action,” he may consider easing the tariff threat.
Trump also reignited long-standing tensions over Canada’s supply management system, once again accusing the country of imposing up to 400 per cent tariffs on U.S. dairy products—an exaggerated claim that has previously been refuted by trade experts.
Labeling the trade deficit with Canada as a risk to the U.S. economy and national security, Trump’s threat marks a sharp escalation in economic rhetoric. The announcement has left Canadian officials and industry leaders bracing for potential fallout as both nations approach a critical phase in renegotiating cross-border agreements.