Trump threatening 35% tariffs on Canadian goods across the board
Trump and PM Carney have been locked in negotiations to reach a trade agreement by July 21
U.S. President Donald Trump is threatening to slap a 35 per cent tariff on all Canadian goods as the two countries have been engaged in negotiations to reach some sort of trade agreement.
Trump's latest threat came in a letter to Prime Minister Mark Carney that the president posted to his social media site, Truth Social, on Thursday evening.
"There will be no tariff if Canada, or companies within your country, decide to manufacture product within the United States," the letter read.
Trump said the tariffs will take effect on Aug. 1, and wrote that he will increase the levies if Canada retaliates.
Trump and Carney have been locked in negotiations to come to some sort of trade resolution by July 21. Carney's office said he had received the letter, and the prime minister said in a social media post he was committed to defending Canadian workers and businesses.
While Carney said Canada would negotiate to the revised deadline date, he also added the country was "strengthening our trade partnerships throughout the world."
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.<br> <br>Canada has made vital progress to stop the scourge…
—@MarkJCarneyIn his letter, Trump again cited fentanyl "pouring" into the U.S. from Canada — even though data continues to show that minimal amounts of the drug are crossing the Canada-U.S. border compared to the U.S.'s southern border.
Trump has been complaining about fentanyl crossing the northern border since he was re-elected in November. After taking office, he imposed tariffs he said are designed to punish Canada for not doing enough to crack down on the fentanyl drug trade.
Carney said in his statement that Canada had made "vital progress" in stemming the flow of fentanyl.
"We are committed to continuing to work with the United States to save lives and protect communities in both our countries," he said.
Now, the president seems to be taking the border-related tariffs a step further by promising a 35 per cent levy. The U.S. is currently imposing a 25 per cent tariff on all non-CUSMA compliant goods coming from Canada and a lower 10 per cent rate on energy and potash as part of a border-related tariffs regime.
A Trump administration official speaking on background told CBC News Friday that the 35 per cent levy is not expected to apply to goods that comply with CUSMA, and would apply only to goods currently tariffed at 25 per cent. However, the official said the president had not made a final decision.
U.S. tariffs on potash and energy are expected to remain at 10 per cent. However, no final decisions have been made by Trump.
Ottawa announced a $1.3-billion investment in border security and named a fentanyl czar to address the concerns coming from the White House.
The U.S. has also hit Canadian steel, aluminum and autos with an import levy, which have been particularly damaging to the Canadian economy, leading to job losses and a drop in exports.
Trade negotiations underway
Trump has also been promising to slap a 50 per cent tariff on copper coming into the U.S. According to federal data, Canada exported some $9.3 billion worth of copper and copper-based products in 2023, with a majority of that — 52 per cent — going to the U.S. China and Japan followed, with 17 and 12 per cent of Canadian exports, respectively.
Although he primarily cited fentanyl in his Thursday letter, Trump also listed other irritants, such as Canada's supply management system.
Carney and Trump have been having direct conversations with each other, and the two agreed to try to resolve trade disputes this month when the president was in Alberta for the G7 summit in June.
Foreign Affairs Minister Anita Anand said just Thursday morning that she was hopeful an agreement could be reached by the July 21 deadline.
"This is an effort that we are putting all our weight behind, it is necessary for the health of our economy," Anand told reporters from Malaysia, where she is attending the Association of Southeast Asian Nations (ASEAN) summit as part of a tour of the Indo-Pacific region.
"We are still hopeful that an agreement can be achieved."
Trump targets other countries with threatening letters
Conservative Leader Pierre Poilievre took to social media Thursday evening to blast the latest tariff threat as "unjustified."
"All Canadians must come together to defend our economy. Conservatives stand ready to do everything we can to secure the best deal for Canada," he wrote in a post on X.
"Our country stands united."
Lara Payne, president of Unifor, which represents some 320,000 employees including auto and steel workers, characterized it as "extortion."
"Workers are counting on our [government] to defend their jobs," said Payne. "Concessions won't stop a bully, but collective strength will."
Last week, the Liberal government announced it would rescind its digital services tax on the eve it was to take effect. Trump demanded the tax be eliminated and cut off Canada-U.S. trade negotiations just days before the announcement.
Trump's letter to Carney was posted just a day after the president posted multiple other letters to social media, threatening tariffs on other countries, including: Brazil, the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka.
ABOUT THE AUTHOR
With files from The Associated Press