U.S. President Donald Trump promised to strike Canada with a 35 per cent blanket import tariff on Aug. 1
By Stephen Hunt
Published:
Alberta premier Danielle Smith issued a statement about Donald Trump's threat to increase tariffs on Canada to 35 per cent (Photo: X@ABDanielleSmith)
Alberta Premier Danielle Smith doesn’t think Donald Trump’s most recent threat to increase Canadian tariffs will help Americans, let alone how much they might damage Canada’s economy.
Smith took to social media Friday morning to post her thoughts following Trump posting on his Truth Social platform a letter threatening to add 35 per cent tariffs to Canadian products
U.S. President Donald Trump's open letter to Prime Minister Mark Carney on July 10, 2025. (Truth Social)
In an open letter to Prime Minister Mark Carney, the U.S. president wrote “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.”
Trump claimed the tariffs were originally imposed on Canada because of the U.S. fentanyl crisis, which he said were partly due to “Canada’s failure to stop the drugs from pouring into our country.”
“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote. “These tariffs may be modified, upward or downward, depending on our relationship with your country.”
“The threatened increase to U.S. tariffs on Canadians goods would be a tax on the American people,“ Smith posted. ”They would also hurt Canadian and American businesses and workers, and damage one of the most important trading and security alliances on earth.
In an open letter to Prime Minister Mark Carney, the U.S. president wrote “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.”
Trump claimed the tariffs were originally imposed on Canada because of the U.S. fentanyl crisis, which he said were partly due to “Canada’s failure to stop the drugs from pouring into our country.”
“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote. “These tariffs may be modified, upward or downward, depending on our relationship with your country.”
“The threatened increase to U.S. tariffs on Canadians goods would be a tax on the American people,“ Smith posted. ”They would also hurt Canadian and American businesses and workers, and damage one of the most important trading and security alliances on earth.
“Retaliatory tariffs by the federal government to this escalation would constitute a tax on Canadian consumers and businesses and only weaken Canada’s economy further.”
Smith suggested that the way out of the mess is for Ottawa to peel back some of the legislation it has implemented in recent years that she believes puts the brakes on the ability of Alberta energy producers to economically produce energy.
“In addition to continuing trade negotiations with the U.S. Administration in hopes of a resolution to this trade dispute, the federal government must also immediately drop the Trudeau-era anti-resource development laws holding our economy back and work at all haste to approve multiple pipelines, rail expansions and transmission lines going west, east and north to diversify and grow our export markets around the world.
“We need to become an economically stronger and more independent country without further delay or excuse.
“It’s time to repeal these terrible laws that continue to weaken our economy, make us dependent on a single customer, and hold back the prosperity of our country.”
Thursday night, Prime Minister Mark Carney responded on social media, saying that Canada would work towards a revised deadline of Aug. 1 in reaching a new trade deal with the U.S., updating the July 21 deadline set last June during the G7 Leaders’ Summit.
“Canada has made vital progress to stop the scourge of fentanyl in North America,” Carney wrote. “We are committed to continuing to work with the United States to save lives and protect communities in both our countries.”
CTV News is reaching out to other Albertans for their reaction to Trump’s latest tariff threat and will be updating this story throughout the day.
With files from CTV’s Hunter Crowther
Stephen Hunt
Digital Producer, CTV News Calgary
Smith suggested that the way out of the mess is for Ottawa to peel back some of the legislation it has implemented in recent years that she believes puts the brakes on the ability of Alberta energy producers to economically produce energy.
“In addition to continuing trade negotiations with the U.S. Administration in hopes of a resolution to this trade dispute, the federal government must also immediately drop the Trudeau-era anti-resource development laws holding our economy back and work at all haste to approve multiple pipelines, rail expansions and transmission lines going west, east and north to diversify and grow our export markets around the world.
“We need to become an economically stronger and more independent country without further delay or excuse.
“It’s time to repeal these terrible laws that continue to weaken our economy, make us dependent on a single customer, and hold back the prosperity of our country.”
Thursday night, Prime Minister Mark Carney responded on social media, saying that Canada would work towards a revised deadline of Aug. 1 in reaching a new trade deal with the U.S., updating the July 21 deadline set last June during the G7 Leaders’ Summit.
“Canada has made vital progress to stop the scourge of fentanyl in North America,” Carney wrote. “We are committed to continuing to work with the United States to save lives and protect communities in both our countries.”
CTV News is reaching out to other Albertans for their reaction to Trump’s latest tariff threat and will be updating this story throughout the day.
With files from CTV’s Hunter Crowther
Stephen Hunt
Digital Producer, CTV News Calgary
Ford says Carney has agreed to first ministers’ meeting amid Trump’s latest tariff threat
By Phil Tsekouras
Updated: July 11, 2025 at 4:23PM EDT
Ontario Premier Doug Ford says Prime Minister Mark Carney has agreed to a first ministers’ meeting following U.S. President Donald Trump’s latest tariff threat.
In a post on social media Friday, Ford announced Carney will meet with provincial and territorial leaders on July 22 in Huntsville ahead of the Council of the Federation meeting with Canada’s premiers, of which Ford is chair.
“In the face of President Trump’s latest threat, we need to come together. We need a plan on how Canada will respond and how we’ll protect our workers, businesses and communities,” he wrote.
“Together, we’re going to remain united as we protect Ontario and protect Canada.”
On Thursday, Trump published a letter addressed to Carney on Truth Social in which he threatened to slap a 35 per cent tariff on Canadian goods starting Aug. 1.
Trump justified the new tariffs by saying Canada’s “failure to stop the drugs from pouring into” the U.S. has contributed to its fentanyl crisis. He has previously cited the spread of the synthetic opioid as a reason for launching his trade war with Canada and Mexico earlier this year.
Following the announcement, Ford’s office pushed Ottawa to “work around the clock to secure a deal” with the U.S. and avoid the new levies.
For Carney’s part, he said Ottawa will continue to “steadfastly” defend workers and businesses in the face of Trump’s latest threat as his government negotiates with the White house.
“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,” Carney wrote in a post on social media.
While Trump said that his administration may consider a tariff adjustment if Canada works to stop the flow of fentanyl into the U.S., he also threatened to match any retaliatory tariffs and add them to the 35 per cent tax.
The White House has confirmed that the 35 per cent tariff will only be applied to goods already subject to the 25 per cent import tax Trump introduced at the start of the trade war. Goods exempt under the North American trade pact are not expected to be impacted.
Tariffs on Canadian steel, aluminum and vehicles remain in place and Trump has said a tariff on copper will start on Aug. 1
Business leaders lament latest U.S. tariff threat as experts play down risks
By The Canadian Press
Updated: July 11, 2025 at 1:59PM EDT
“Nobody in our sector wants to make a decision that ultimately, as a result of the president’s capriciousness, will suddenly will be the wrong decision in a month.”
He said some kind of deal on tariffs would provide some degree of certainty, at least a window until full renegotiations of the CUSMA trade deal launch.
“That would be the best of a bad lot.”
Candace Laing, head of the Canadian Chamber of Commerce, said in a statement that the tariffs would continue to damage the “most productive trade relationship two countries have ever had” and urged both sides to reach a real and reliable deal.
Giles Gherson, CEO of the Toronto Region Board of Trade, says members are “deeply frustrated” by yet another turn in U.S. trade policy that is not grounded in economic logic.
He says the federal government must keep negotiating for the best deal possible, while the business community needs to focus on what it can control.
---
Ian Bickis, The Canadian Press
This report by The Canadian Press was first published July 11, 2025.
By Phil Tsekouras
Updated: July 11, 2025 at 4:23PM EDT
Ontario Premier Doug Ford says Prime Minister Mark Carney has agreed to a first ministers’ meeting following U.S. President Donald Trump’s latest tariff threat.
In a post on social media Friday, Ford announced Carney will meet with provincial and territorial leaders on July 22 in Huntsville ahead of the Council of the Federation meeting with Canada’s premiers, of which Ford is chair.
“In the face of President Trump’s latest threat, we need to come together. We need a plan on how Canada will respond and how we’ll protect our workers, businesses and communities,” he wrote.
“Together, we’re going to remain united as we protect Ontario and protect Canada.”
On Thursday, Trump published a letter addressed to Carney on Truth Social in which he threatened to slap a 35 per cent tariff on Canadian goods starting Aug. 1.
Trump justified the new tariffs by saying Canada’s “failure to stop the drugs from pouring into” the U.S. has contributed to its fentanyl crisis. He has previously cited the spread of the synthetic opioid as a reason for launching his trade war with Canada and Mexico earlier this year.
Following the announcement, Ford’s office pushed Ottawa to “work around the clock to secure a deal” with the U.S. and avoid the new levies.
For Carney’s part, he said Ottawa will continue to “steadfastly” defend workers and businesses in the face of Trump’s latest threat as his government negotiates with the White house.
“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,” Carney wrote in a post on social media.
While Trump said that his administration may consider a tariff adjustment if Canada works to stop the flow of fentanyl into the U.S., he also threatened to match any retaliatory tariffs and add them to the 35 per cent tax.
The White House has confirmed that the 35 per cent tariff will only be applied to goods already subject to the 25 per cent import tax Trump introduced at the start of the trade war. Goods exempt under the North American trade pact are not expected to be impacted.
Tariffs on Canadian steel, aluminum and vehicles remain in place and Trump has said a tariff on copper will start on Aug. 1
Trump’s new tariff ‘not grounded in economic logic’: Toronto trade board
The head of Toronto’s trade board said Trump’s latest tariff threat is “not grounded in economic logic” as he pushed Ottawa to continue to negotiate the “best deal it can” for Canadians.
“Our members are deeply frustrated by yet another disruptive turn in U.S. trade policy,” Toronto Region Board of Trade president and CEO Giles Gherson said in a statement issued Friday, calling the latest development in Trump’s ongoing trade war with Canada a “bargaining tactic.”
The head of Toronto’s trade board said Trump’s latest tariff threat is “not grounded in economic logic” as he pushed Ottawa to continue to negotiate the “best deal it can” for Canadians.
“Our members are deeply frustrated by yet another disruptive turn in U.S. trade policy,” Toronto Region Board of Trade president and CEO Giles Gherson said in a statement issued Friday, calling the latest development in Trump’s ongoing trade war with Canada a “bargaining tactic.”
“It also comes at a time when Canadian businesses are already navigating the competitive pressures created by the United States’ new industrial strategy, the so-called ‘One Big Beautiful Bill,’” he said.
Before the new Aug. 1 deadline was announced on Thursday, Trump and Carney had agreed to a negotiate a deal by July 21. Those talks were briefly halted after Canada imposed—and then removed—a digital services tax on U.S. tech companies.
Businesses must ‘urgently’ accelerate productivity: Gherson
As the Aug. 1 deadline approaches and as trade negotiations continue, Gherson urged businesses to “urgently” accelerate productivity, strengthen internal economic cohesion and expand Canada’s global trade footprint.
“This is how we build the long-term economic resilience Canada needs, no matter who occupies the White House,” he said.
Meanwhile, Canada’s largest private sector union, Unifor, urged Carney to “push back-hard” against Trump.
“Canada must use every bit of leverage we have. Workers are counting on our government to defend their jobs and industries. Concessions won’t stop a bully, but collective strength will,” National President Lana Payne said in a news release on Friday.
Phil Tsekouras
CTVNewsToronto.ca Journalist
Before the new Aug. 1 deadline was announced on Thursday, Trump and Carney had agreed to a negotiate a deal by July 21. Those talks were briefly halted after Canada imposed—and then removed—a digital services tax on U.S. tech companies.
Businesses must ‘urgently’ accelerate productivity: Gherson
As the Aug. 1 deadline approaches and as trade negotiations continue, Gherson urged businesses to “urgently” accelerate productivity, strengthen internal economic cohesion and expand Canada’s global trade footprint.
“This is how we build the long-term economic resilience Canada needs, no matter who occupies the White House,” he said.
Meanwhile, Canada’s largest private sector union, Unifor, urged Carney to “push back-hard” against Trump.
“Canada must use every bit of leverage we have. Workers are counting on our government to defend their jobs and industries. Concessions won’t stop a bully, but collective strength will,” National President Lana Payne said in a news release on Friday.
Phil Tsekouras
CTVNewsToronto.ca Journalist
Carney to meet with cabinet, premiers following Trump’s latest tariff threat
By The Canadian Press
Updated: July 11, 2025 at 1:47PM EDT
Prime Minister Mark Carney will be meeting with his cabinet and Canada’s premiers to discuss U.S. President Donald Trump’s new threat to slap 35 per cent tariffs on Canadian goods next month.
The Prime Minister’s Office announced there will be a cabinet meeting on Tuesday to discuss ongoing Canada-U.S. trade negotiations. Carney’s office said he also will meet with the premiers on July 22 as they gather for the annual Council of the Federation conference in Huntsville, Ont.
Carney said Thursday his government will “steadfastly” defend workers and businesses. In a late night post on social media, Carney said Canada will continue to work to secure a trade deal with the U.S. by a revised deadline of Aug. 1.
In a letter to Carney on Thursday, Trump threatened to impose 35 per cent tariffs on Canadian goods by that date - evidently setting a new deadline for the trade talks that were supposed to wrap up by July 21.
A White House official said the 35 per cent tariff rate is only expected to be applied to goods already hit with a 25 per cent import tax. This would exempt goods compliant with the Canada-U.S.-Mexico Agreement on trade, called CUSMA, plus energy and potash imports that face a 10 per cent tariff rate.
The official said no final policy paper has been drafted and Trump has not yet made a final decision.
Canada also faces additional U.S. tariffs on steel, aluminum and automobiles, as well as a U.S. plan to introduce tariffs on copper on Aug. 1.
Asked about the tariff threat while leaving the White House Friday morning, Trump told reporters that “it was sent yesterday. They called. I think it was fairly well received.”
A spokeswoman for the Prime Minister’s Office said Carney and Trump did not speak Thursday night. She said that while officials from both countries meet daily as trade talks continue, Thursday’s meeting took place before Trump sent his tariff letter.
Trump’s letter said if Canada works to stop the flow of fentanyl into the United States, he may consider a tariff adjustment. U.S. government data shows the volume of fentanyl seized at the United States’ northern border is minuscule compared to the amounts recovered at the border with Mexico.
Trump declared an emergency at the northern border in order to use the International Economic Emergency Powers Act of 1977, or IEEPA, to slap Canada with economywide tariffs in March. He partially paused the duties a few days later for imports compliant under CUSMA.
It’s not clear whether Trump’s use of IEEPA to hit nearly every nation with duties will survive a looming legal challenge. The United States Court of Appeals for the Federal Circuit is scheduled to hear arguments on July 31 - a day before the tariffs are set to return.
The U.S. Court of International Trade said in May that Trump does not have the authority to use the national security statute for the fentanyl and so-called “reciprocal” tariffs. Trump’s administration promptly appealed the decision and it’s expected to go all the way to the Supreme Court.
Trump has continued to use the tariff lever to pressure countries to sign trade deals. Canada was the latest nation to receive correspondence from Trump this week outlining higher duties.
Marty Warren, national director of the United Steelworkers, said the government needs to take “urgent measures” to keep workers employed and industries running.
The steel and aluminum sectors have been hard hit by Trump’s 25 per cent tariffs on those metals, invoked under a national security rationale separate from the IEEPA tariffs.
“This is clearly about power and control. It has nothing to do with public safety or fair trade,” Warren said in a media statement.
“Canada cannot cave to blackmail. Our government must stand up for Canadian workers, enforce trade rules and protect our industries before it’s too late.”
Federal Industry Minister Melanie Joly said at a time of uncertainty, Canada must strengthen its economic relationships with other nations.
“We are not alone in this world,” she said in Ottawa during a Friday news conference with Stephane Sejourne, the visiting European Commission executive vice-president for prosperity and industrial strategy. “We need to be closer to our allies.”
When asked about plans for retaliation, Joly said Canada and China are the only nations that have taken such a stance so far.
“We have had already a very strong response,” Joly said
Alberta Premier Danielle Smith discouraged Ottawa from imposing further retaliatory tariffs in a post on social media, saying it would “constitute a tax on Canadian consumers and businesses and only weaken Canada’s economy further.”
Smith said the federal government should also drop “Trudeau-era anti-resource development laws.”
In a social media post, Ontario Premier Doug Ford said “we need to come together” and develop a plan to protect Canadian workers, business and communities.
Saskatchewan Premier Scott Moe said in a media statement that while Trump’s tariff escalation is “concerning, it should not have much impact on Saskatchewan” because “about 95 per cent” of the province’s exports are covered by the current free trade agreement.
Ontario Conservative MP Adam Chambers sent a letter to the chair of the House of Commons international trade committee Friday afternoon asking for a meeting so MPs can discuss and debate Canada’s negotiating position.
Chambers wrote that trade-exposed businesses “deserve” a chance to tell Parliament about the “direct impacts of U.S. actions and Canadian countermeasures.”
“This is particularly urgent, as Parliament has not offered such a forum since it adjourned after a brief spring session,” Chambers wrote.
Bloc Quebecois Leader Yves-Francois Blanchet said on social media that his party supports increasing trade ties with the European Union. He also accused Carney of “failing” by focusing on investments in the oil and gas sector, which he said would only affect trade “well after Donald Trump’s departure.”
In Washington, Sen. Jeanne Shaheen said the latest tariff threat against America’s northern neighbour undermines the Trump administration’s own negotiations to reach a trade deal, while the “consistent attacks” on Canada have damaged a “vital relationship.”
The Democrat from New Hampshire said she’s heard many complaints about tourists not coming from Canada and lost business due to Trump’s trade war.
“The American people and the overwhelming majority of my colleagues in Congress reject this short-sighted and costly trade war with Canada,” Shaheen said in a news release.
By David Baxter and Kelly Malone.
By The Canadian Press
Updated: July 11, 2025 at 1:47PM EDT
Prime Minister Mark Carney will be meeting with his cabinet and Canada’s premiers to discuss U.S. President Donald Trump’s new threat to slap 35 per cent tariffs on Canadian goods next month.
The Prime Minister’s Office announced there will be a cabinet meeting on Tuesday to discuss ongoing Canada-U.S. trade negotiations. Carney’s office said he also will meet with the premiers on July 22 as they gather for the annual Council of the Federation conference in Huntsville, Ont.
Carney said Thursday his government will “steadfastly” defend workers and businesses. In a late night post on social media, Carney said Canada will continue to work to secure a trade deal with the U.S. by a revised deadline of Aug. 1.
In a letter to Carney on Thursday, Trump threatened to impose 35 per cent tariffs on Canadian goods by that date - evidently setting a new deadline for the trade talks that were supposed to wrap up by July 21.
A White House official said the 35 per cent tariff rate is only expected to be applied to goods already hit with a 25 per cent import tax. This would exempt goods compliant with the Canada-U.S.-Mexico Agreement on trade, called CUSMA, plus energy and potash imports that face a 10 per cent tariff rate.
The official said no final policy paper has been drafted and Trump has not yet made a final decision.
Canada also faces additional U.S. tariffs on steel, aluminum and automobiles, as well as a U.S. plan to introduce tariffs on copper on Aug. 1.
Asked about the tariff threat while leaving the White House Friday morning, Trump told reporters that “it was sent yesterday. They called. I think it was fairly well received.”
A spokeswoman for the Prime Minister’s Office said Carney and Trump did not speak Thursday night. She said that while officials from both countries meet daily as trade talks continue, Thursday’s meeting took place before Trump sent his tariff letter.
Trump’s letter said if Canada works to stop the flow of fentanyl into the United States, he may consider a tariff adjustment. U.S. government data shows the volume of fentanyl seized at the United States’ northern border is minuscule compared to the amounts recovered at the border with Mexico.
Trump declared an emergency at the northern border in order to use the International Economic Emergency Powers Act of 1977, or IEEPA, to slap Canada with economywide tariffs in March. He partially paused the duties a few days later for imports compliant under CUSMA.
It’s not clear whether Trump’s use of IEEPA to hit nearly every nation with duties will survive a looming legal challenge. The United States Court of Appeals for the Federal Circuit is scheduled to hear arguments on July 31 - a day before the tariffs are set to return.
The U.S. Court of International Trade said in May that Trump does not have the authority to use the national security statute for the fentanyl and so-called “reciprocal” tariffs. Trump’s administration promptly appealed the decision and it’s expected to go all the way to the Supreme Court.
Trump has continued to use the tariff lever to pressure countries to sign trade deals. Canada was the latest nation to receive correspondence from Trump this week outlining higher duties.
Marty Warren, national director of the United Steelworkers, said the government needs to take “urgent measures” to keep workers employed and industries running.
The steel and aluminum sectors have been hard hit by Trump’s 25 per cent tariffs on those metals, invoked under a national security rationale separate from the IEEPA tariffs.
“This is clearly about power and control. It has nothing to do with public safety or fair trade,” Warren said in a media statement.
“Canada cannot cave to blackmail. Our government must stand up for Canadian workers, enforce trade rules and protect our industries before it’s too late.”
Federal Industry Minister Melanie Joly said at a time of uncertainty, Canada must strengthen its economic relationships with other nations.
“We are not alone in this world,” she said in Ottawa during a Friday news conference with Stephane Sejourne, the visiting European Commission executive vice-president for prosperity and industrial strategy. “We need to be closer to our allies.”
When asked about plans for retaliation, Joly said Canada and China are the only nations that have taken such a stance so far.
“We have had already a very strong response,” Joly said
Alberta Premier Danielle Smith discouraged Ottawa from imposing further retaliatory tariffs in a post on social media, saying it would “constitute a tax on Canadian consumers and businesses and only weaken Canada’s economy further.”
Smith said the federal government should also drop “Trudeau-era anti-resource development laws.”
In a social media post, Ontario Premier Doug Ford said “we need to come together” and develop a plan to protect Canadian workers, business and communities.
Saskatchewan Premier Scott Moe said in a media statement that while Trump’s tariff escalation is “concerning, it should not have much impact on Saskatchewan” because “about 95 per cent” of the province’s exports are covered by the current free trade agreement.
Ontario Conservative MP Adam Chambers sent a letter to the chair of the House of Commons international trade committee Friday afternoon asking for a meeting so MPs can discuss and debate Canada’s negotiating position.
Chambers wrote that trade-exposed businesses “deserve” a chance to tell Parliament about the “direct impacts of U.S. actions and Canadian countermeasures.”
“This is particularly urgent, as Parliament has not offered such a forum since it adjourned after a brief spring session,” Chambers wrote.
Bloc Quebecois Leader Yves-Francois Blanchet said on social media that his party supports increasing trade ties with the European Union. He also accused Carney of “failing” by focusing on investments in the oil and gas sector, which he said would only affect trade “well after Donald Trump’s departure.”
In Washington, Sen. Jeanne Shaheen said the latest tariff threat against America’s northern neighbour undermines the Trump administration’s own negotiations to reach a trade deal, while the “consistent attacks” on Canada have damaged a “vital relationship.”
The Democrat from New Hampshire said she’s heard many complaints about tourists not coming from Canada and lost business due to Trump’s trade war.
“The American people and the overwhelming majority of my colleagues in Congress reject this short-sighted and costly trade war with Canada,” Shaheen said in a news release.
By David Baxter and Kelly Malone.
Business leaders lament latest U.S. tariff threat as experts play down risks
By The Canadian Press
Updated: July 11, 2025 at 1:59PM EDT
A forklift moves a container around a freight terminal, in St. John's, Sunday, June 25, 2023. THE CANADIAN PRESS/Adrian Wyld
TORONTO — The latest tariff threat from U.S. President Donald Trump is drawing condemnation from business leaders, though more because of the added uncertainty than the potential direct impact that experts played down.
Trump threatened to impose a 35 per cent tariff on all Canadian goods On Aug. 1 in a letter released late Thursday, only for White House officials to later clarify it would only apply to non-CUSMA compliant goods.Trade War coverage on BNNBloomberg.ca
The narrowed application makes it mostly meaningless, said Joseph Steinberg, an economics professor at the University of Toronto
“The CUSMA exemptions remaining in place mean that all of this is pretty much all just talk, and nothing that’s really going to materially affect our economy,” he said.
“I can’t imagine that this is anything other than just some kind of tough negotiating talk to try to extract some concessions.”
Canadian exports for May paid overall a two per cent tariff rate, showing how little effect the existing headline tariff rates on non-compliant goods, metals and autos is having, he said. Some companies have stockpiled goods and held back shipments, partially explaining the low number, but overall he said even boosting the broad rate to 35 per cent would increase the effective rate by only a fraction of a per cent.
Added uncertainty was the main effect that Derek Holt, head of capital markets economics at Scotiabank, highlighted from the latest salvo.
“This historic uncertainty surrounding the rules of commerce will damage confidence to spend, hire, and invest in the world economy including in America. It is a total own-goal by a U.S. administration whose policies are needlessly damaging the U.S. and world economies,” he said in a note.
Canadian exporters who didn’t previously bother have been rushing to become complaint, said Holt. About half are already approved, and expectations are that 80 to 90 per cent of exporters will be able to get there, leaving an effective tariff rate of between four and seven per cent, he said.
“If he were to go ahead, it could still be a meaningful hit.”
The tariffs are in addition to the existing tariffs on metal and automotive exports, which makes it all the more important Canada manages to get those lifted, said Dennis Darby, head of Canadian Manufacturers & Exporters.
“It’s better than it could be, but of course it puts more pressure on that negotiation that the Prime Minister announced back at Kananaskis.”
Prime Minister Mark Carney had set a 30-day deadline to reach deals on the various tariffs, but he said in a statement that Canada will continue to work to secure a trade deal with the U.S. by a revised deadline of Aug. 1.
The delay is just part of a longer waiting game that businesses are having to navigate, said Darby.
TORONTO — The latest tariff threat from U.S. President Donald Trump is drawing condemnation from business leaders, though more because of the added uncertainty than the potential direct impact that experts played down.
Trump threatened to impose a 35 per cent tariff on all Canadian goods On Aug. 1 in a letter released late Thursday, only for White House officials to later clarify it would only apply to non-CUSMA compliant goods.Trade War coverage on BNNBloomberg.ca
The narrowed application makes it mostly meaningless, said Joseph Steinberg, an economics professor at the University of Toronto
“The CUSMA exemptions remaining in place mean that all of this is pretty much all just talk, and nothing that’s really going to materially affect our economy,” he said.
“I can’t imagine that this is anything other than just some kind of tough negotiating talk to try to extract some concessions.”
Canadian exports for May paid overall a two per cent tariff rate, showing how little effect the existing headline tariff rates on non-compliant goods, metals and autos is having, he said. Some companies have stockpiled goods and held back shipments, partially explaining the low number, but overall he said even boosting the broad rate to 35 per cent would increase the effective rate by only a fraction of a per cent.
Added uncertainty was the main effect that Derek Holt, head of capital markets economics at Scotiabank, highlighted from the latest salvo.
“This historic uncertainty surrounding the rules of commerce will damage confidence to spend, hire, and invest in the world economy including in America. It is a total own-goal by a U.S. administration whose policies are needlessly damaging the U.S. and world economies,” he said in a note.
Canadian exporters who didn’t previously bother have been rushing to become complaint, said Holt. About half are already approved, and expectations are that 80 to 90 per cent of exporters will be able to get there, leaving an effective tariff rate of between four and seven per cent, he said.
“If he were to go ahead, it could still be a meaningful hit.”
The tariffs are in addition to the existing tariffs on metal and automotive exports, which makes it all the more important Canada manages to get those lifted, said Dennis Darby, head of Canadian Manufacturers & Exporters.
“It’s better than it could be, but of course it puts more pressure on that negotiation that the Prime Minister announced back at Kananaskis.”
Prime Minister Mark Carney had set a 30-day deadline to reach deals on the various tariffs, but he said in a statement that Canada will continue to work to secure a trade deal with the U.S. by a revised deadline of Aug. 1.
The delay is just part of a longer waiting game that businesses are having to navigate, said Darby.
“Nobody in our sector wants to make a decision that ultimately, as a result of the president’s capriciousness, will suddenly will be the wrong decision in a month.”
He said some kind of deal on tariffs would provide some degree of certainty, at least a window until full renegotiations of the CUSMA trade deal launch.
“That would be the best of a bad lot.”
Candace Laing, head of the Canadian Chamber of Commerce, said in a statement that the tariffs would continue to damage the “most productive trade relationship two countries have ever had” and urged both sides to reach a real and reliable deal.
Giles Gherson, CEO of the Toronto Region Board of Trade, says members are “deeply frustrated” by yet another turn in U.S. trade policy that is not grounded in economic logic.
He says the federal government must keep negotiating for the best deal possible, while the business community needs to focus on what it can control.
---
Ian Bickis, The Canadian Press
This report by The Canadian Press was first published July 11, 2025.
Trade war with U.S. has not dampened foreign investors’ appetite for Montreal
By The Canadian Press
Published: July 11, 2025 at 10:18AM EDT
Foreign companies invested more money than last year in the greater Montreal area despite threats from U.S President Donald Trump. "Bonjour Montreal" in giant letters in front of downtown on July 6, 2023.
THE CANADIAN PRESS/Ryan Remiorz
MONTREAL — Foreign investment is on the rise in Montreal despite Canada’s trade war with the United States.
A Montreal economic development agency says the value of investment from foreign companies rose 55 per cent to $1.69 billion in the first six months of the year compared to the same period in 2024.
Preliminary data from Montréal International says the agency this year supported 29 projects in the greater Montreal area that created 1,866 jobs with an average salary of $101,000.
MONTREAL — Foreign investment is on the rise in Montreal despite Canada’s trade war with the United States.
A Montreal economic development agency says the value of investment from foreign companies rose 55 per cent to $1.69 billion in the first six months of the year compared to the same period in 2024.
Preliminary data from Montréal International says the agency this year supported 29 projects in the greater Montreal area that created 1,866 jobs with an average salary of $101,000.
And despite tariffs imposed by U.S. President Donald Trump — and his recent threats to impose more — 46 per cent of foreign investment in Montreal so far this year is from American companies.
Stéphane Paquet, CEO of Montréal International, says the uncertainty around immigration is hurting investment in the city more than the trade war is.
Paquet says companies are looking for more stability in provincial and federal immigration policies so that firms can better predict labour market trends.
---
Stéphane Rolland, The Canadian Press
This report by The Canadian Press was first published July 11, 2025.
Stéphane Paquet, CEO of Montréal International, says the uncertainty around immigration is hurting investment in the city more than the trade war is.
Paquet says companies are looking for more stability in provincial and federal immigration policies so that firms can better predict labour market trends.
---
Stéphane Rolland, The Canadian Press
This report by The Canadian Press was first published July 11, 2025.
Trump says ‘the friends have been worse than the foes’ after announcing new tariffs on Canada
2:07 p.m. EDT: Joly: ‘Economic diplomacy is more important than ever’
Industry Minister Mélanie Joly says “economic diplomacy is more important than ever” in the wake of U.S. President Donald Trump’s ongoing tariff threats.
Joly made the remarks in a joint media availability in Ottawa with European Commissioner Executive Vice-President for Prosperity and Industrial Stéphane Séjourné, aimed at highlighting the new partnership between Canada and the European Union to strengthen trade and economic security ties.
“We’re not in normal times and economic diplomacy is more important than than ever, and that’s why we need to make sure that while the U.S. is closing its market and really taking its own path regarding protectionism, that we as a stable and democratic country continue to have open markets, including with the E.U.,” Joly said to reporters.
When asked directly about what new measures the federal government is willing to take moving forward to counter the U.S., Joly said, “We won’t negotiate in public, and we’ll let the Prime Minister negotiate.”
“Fundamentally, while these negotiations are happening, we need to realign ourselves with trusted partners, and today what you’re seeing is a realignment between trusted partners,” she added.
Stephanie Ha, Supervising Producer, Ottawa News Bureau
1 p.m. EDT: Changing tariff timelines are ‘toxic’
While a new tariff deadline may provide more room for Canada to get a deal with the U.S., the moving timelines are creating other problems, the Canadian Chamber of Commerce (CCC) says.
“What this letter to Canada does in effect is further lengthen the time for negotiations,” said CCC Chief of Public Policy Matthew Holmes. But “the uncertainty for business, the constant changing of the goal posts, and the deadlines, and the numbers, continues – and that’s quite toxic for business.”
Trump’s letter to Prime Minister Mark Carney has the 35% tariffs on Canadian imports coming into effect August 1, rather than the July 21 deadline set last month at the G7 Leaders’ Summit in Alberta.
Holmes says the letter is also part of Trump’s negotiation strategy.
“There’s a bully pulpit happening here for sure, and I think we are all getting too familiar with the approach and the tone and style of the president”
Canada must “hit back hard” against the U.S. or risk losing domestic jobs, says Canada’s largest private sector union, Unifor.
“Trump’s playbook is clear, implement and threaten sky-high tariffs to condition us into accepting a lower baseline tariff as the new normal. We must never fall for it,” said Unifor National President Lana Payne.
“That’s not negotiation—that’s coercion. We will not settle for a future where Canadian jobs are held hostage to the U.S.”
In his letter to Prime Minister Mark Carney, Trump said companies could avoid tariffs if they manufacture their products in the U.S. He also vowed to “get approvals” for those companies in a matter of weeks.
Unifor also wants Ottawa to stockpile aluminum, critical minerals and other items as part of a national reserve strategy.
Luca Caruso-Moro, CTVNews.ca journalist
Luca Caruso-Moro, CTVNews.ca journalist, Phil Tsekouras, CTVNewsToronto.ca journalist
11:20 a.m. EDT: Tariff threat ‘not grounded in economic logic’
The head of Toronto’s trade board says U.S. President Donald Trump’s latest tariff threat is “not grounded in economic logic” as he pushed Ottawa to continue to negotiate the “best deal it can” for Canadians.
“Our members are deeply frustrated by yet another disruptive turn in U.S. trade policy,” Toronto Region Board of Trade president and CEO Giles Gherson said in a statement issued Friday, calling the latest development in Trump’s ongoing trade war with Canada a “bargaining tactic.”
“It also comes at a time when Canadian businesses are already navigating the competitive pressures created by the United States’ new industrial strategy, the so-called ‘One Big Beautiful Bill,’” he said.
Phil Tsekouras, CTVNewsToronto.ca journalist
10:55 a.m. EDT: Canadian border ‘not an important part’ of fentanyl fight: U.S. think tank
According to a July report from U.S. think tank the Manhattan Institute, barely any of the fentanyl seized in the United States originates from Canada.
Trump has cited fentanyl as a reason for imposing tariffs on Canada.
“These data call into question tariffs and other policies and policy justifications that treat the threat from the northern border as comparably severe (to the U.S.-Mexico border),” the report reads.
By weight, about 99 per cent of fentanyl pills, capsules or tablets and 97 per cent of powder, resin or tar gathered in large, land-boundary seizures between 2013 and 2024 were discovered in U.S.-Mexico border counties, according to the report.
And U.S. Customs and Border Protection (CBP) data show that of the 4,376 total fentanyl seizures counted by CBP between October 2021 and February 2025, just 241 occurred at Canada-U.S. boundaries, and only 162 of those were along the land border between the two countries.
“Counties along the Canadian border are not an important part of this story,” the report concludes.
“Whatever the merits or drawbacks of tariffs on imports from Canada … such actions cannot be justified as part of a pragmatic and data-informed response to the threat of fentanyl to the United States.”
Charlie Buckley, CTVNews.ca journalist
10:20 a.m. EDT: Trump: ‘We’ve been taken advantage of’
Asked for his advice to countries ahead of tariff deadlines, Trump told reporters those nations should “just keep working hard,” and that “it’s all going to work out.”
Trump was asked shortly before taking off for a trip to central Texas to survey damage from recent floods.
U.S. President Trump speaks on America being ‘taken advantage of’ by Canada and other trade partners in the past.
“We’ve been taken advantage of for many, many years by countries, both friend and foe,” he said Friday. “Frankly, the friends have been worse than the foes, in many cases.”
Charlie Buckley, CTVNews.ca journalist
9:35 a.m. EDT: CUSMA-compliant goods likely won’t be hit: official
A White House official speaking to CTV News says Trump’s new 35 per cent tariff threat likely won’t impact Canadian imports that are compliant under the Canada-U.S.-Mexico Agreement (CUSMA).
It means goods already tariffed at 25 per cent and not protected under CUSMA could be tariffed by 35 per cent on Aug. 1. Tariffs on some energy-related products and potash are expected to remain at 10 per cent.
But the official also tells CTV News that Trump has made “no final decisions” and “no final paper has been drafted.”
Stephanie Ha, CTV News journalist
CTV’s Jeremie Charron says even though U.S. President Trump has declared he will add 35 per cent tariffs on Canadian good, nothing is official as of yet.
9 a.m. EDT: Canada needs to ‘work around the clock’: Ford
Ontario’s premier called on the federal government to act with urgency to strike a deal with U.S. in the face of new looming tariffs.
“Now more than ever, we need the federal government to work around the clock to secure a deal that is right for Canada and eliminates all American tariffs,” Ontario Premier Doug Ford’s office said in a statement.
Bryann Aguilar, CP24.com journalist
Read Trump’s letter
Trump posted the following letter, addressed to Prime Minister Mark Carney, on Truth Social Thursday evening.
“Dear Mr. Prime Minister:
“It is a Great Honor for me to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship, and the fact that the United States of America has agreed to continue working with Canada, despite Canada having financially retaliated against the United States. 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. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs. Goods transshipped to evade this higher Tariff will be subject to that higher Tariff. As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely – In other words, in a matter of weeks.
“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% that we charge.
“Also, I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States. Canada charges extraordinary Tariffs to our Dairy Farmers – up to 400% – and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada. The Trade Deficit is a major threat to our Economy and, indeed, our National Security!
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider and adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with you Country. You will never be disappointed with The United States of America.
“Thank you for your attention to this matter!
“With best wishes, I am,
“Sincerely,
“DONALD J. TRUMP
“PRESIDENT OF THE UNITED STATES OF AMERICA”
Carney responds
In response to Trump’s letter, Carney published the following post 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.”
The “revised deadline” is in reference to a shift from July 21, the date by which the two leaders agreed to ink a trade deal.
Updated: July 11, 2025 at 2:23PM EDT
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U.S. President Trump bringing ‘bully pulpit’ approach to tariff negotiations: Holmes
Trump tariff threats a ‘roller coaster ride’ for Canadian small businesses
U.S. President Donald Trump promised to strike Canada with a 35 per cent blanket import tariff on Aug. 1 in a letter to the prime minister published on Truth Social.
It’s an escalation to the two nations’ enduring, months-long trade war. Both countries, which share deeply connected supply chains, have levied tariffs on billions of dollars in goods against each other.
Here’s how Friday unfolded.
Trump tariff threats a ‘roller coaster ride’ for Canadian small businesses
U.S. President Donald Trump promised to strike Canada with a 35 per cent blanket import tariff on Aug. 1 in a letter to the prime minister published on Truth Social.
It’s an escalation to the two nations’ enduring, months-long trade war. Both countries, which share deeply connected supply chains, have levied tariffs on billions of dollars in goods against each other.
Here’s how Friday unfolded.
2:07 p.m. EDT: Joly: ‘Economic diplomacy is more important than ever’
Industry Minister Mélanie Joly says “economic diplomacy is more important than ever” in the wake of U.S. President Donald Trump’s ongoing tariff threats.
Joly made the remarks in a joint media availability in Ottawa with European Commissioner Executive Vice-President for Prosperity and Industrial Stéphane Séjourné, aimed at highlighting the new partnership between Canada and the European Union to strengthen trade and economic security ties.
“We’re not in normal times and economic diplomacy is more important than than ever, and that’s why we need to make sure that while the U.S. is closing its market and really taking its own path regarding protectionism, that we as a stable and democratic country continue to have open markets, including with the E.U.,” Joly said to reporters.
When asked directly about what new measures the federal government is willing to take moving forward to counter the U.S., Joly said, “We won’t negotiate in public, and we’ll let the Prime Minister negotiate.”
“Fundamentally, while these negotiations are happening, we need to realign ourselves with trusted partners, and today what you’re seeing is a realignment between trusted partners,” she added.
Stephanie Ha, Supervising Producer, Ottawa News Bureau
1 p.m. EDT: Changing tariff timelines are ‘toxic’
While a new tariff deadline may provide more room for Canada to get a deal with the U.S., the moving timelines are creating other problems, the Canadian Chamber of Commerce (CCC) says.
“What this letter to Canada does in effect is further lengthen the time for negotiations,” said CCC Chief of Public Policy Matthew Holmes. But “the uncertainty for business, the constant changing of the goal posts, and the deadlines, and the numbers, continues – and that’s quite toxic for business.”
Trump’s letter to Prime Minister Mark Carney has the 35% tariffs on Canadian imports coming into effect August 1, rather than the July 21 deadline set last month at the G7 Leaders’ Summit in Alberta.
Holmes says the letter is also part of Trump’s negotiation strategy.
“There’s a bully pulpit happening here for sure, and I think we are all getting too familiar with the approach and the tone and style of the president”
Canada must “hit back hard” against the U.S. or risk losing domestic jobs, says Canada’s largest private sector union, Unifor.
“Trump’s playbook is clear, implement and threaten sky-high tariffs to condition us into accepting a lower baseline tariff as the new normal. We must never fall for it,” said Unifor National President Lana Payne.
“That’s not negotiation—that’s coercion. We will not settle for a future where Canadian jobs are held hostage to the U.S.”
In his letter to Prime Minister Mark Carney, Trump said companies could avoid tariffs if they manufacture their products in the U.S. He also vowed to “get approvals” for those companies in a matter of weeks.
Unifor also wants Ottawa to stockpile aluminum, critical minerals and other items as part of a national reserve strategy.
Luca Caruso-Moro, CTVNews.ca journalist
Unifor national president Lana Payne prepares to appear before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities, in Ottawa, on Thursday, March 21, 2024. THE CANADIAN PRESS/Justin Tang
11:25 a.m. EDT: Carney calls in cabinet after Trump’s threats
Prime Minister Carney will convene his cabinet to talk trade next week.
The roundtable will take place on Tuesday with U.S. negotiations as its centrepiece, according to the Prime Minister’s Office. It precedes Carney’s meeting with premiers the following week.
In a post on social media Friday, Ford announced Carney will meet with provincial and territorial leaders on July 22 in Huntsville, Ont. ahead of the Council of the Federation meeting with Canada’s premiers, of which Ford is chair.
“Together, we’re going to remain united as we protect Ontario and protect Canada,” he said.
Prime Minister Carney will convene his cabinet to talk trade next week.
The roundtable will take place on Tuesday with U.S. negotiations as its centrepiece, according to the Prime Minister’s Office. It precedes Carney’s meeting with premiers the following week.
In a post on social media Friday, Ford announced Carney will meet with provincial and territorial leaders on July 22 in Huntsville, Ont. ahead of the Council of the Federation meeting with Canada’s premiers, of which Ford is chair.
“Together, we’re going to remain united as we protect Ontario and protect Canada,” he said.
Luca Caruso-Moro, CTVNews.ca journalist, Phil Tsekouras, CTVNewsToronto.ca journalist
The First Minister’s Meeting in Saskatoon on Monday, June 2, 2025. THE CANADIAN PRESS/Liam Richards
11:20 a.m. EDT: Tariff threat ‘not grounded in economic logic’
The head of Toronto’s trade board says U.S. President Donald Trump’s latest tariff threat is “not grounded in economic logic” as he pushed Ottawa to continue to negotiate the “best deal it can” for Canadians.
“Our members are deeply frustrated by yet another disruptive turn in U.S. trade policy,” Toronto Region Board of Trade president and CEO Giles Gherson said in a statement issued Friday, calling the latest development in Trump’s ongoing trade war with Canada a “bargaining tactic.”
“It also comes at a time when Canadian businesses are already navigating the competitive pressures created by the United States’ new industrial strategy, the so-called ‘One Big Beautiful Bill,’” he said.
Phil Tsekouras, CTVNewsToronto.ca journalist
The Bay Street Financial District is shown with the Canadian flag in Toronto on Friday, August 5, 2022. THE CANADIAN PRESS/Nathan Denette
10:55 a.m. EDT: Canadian border ‘not an important part’ of fentanyl fight: U.S. think tank
According to a July report from U.S. think tank the Manhattan Institute, barely any of the fentanyl seized in the United States originates from Canada.
Trump has cited fentanyl as a reason for imposing tariffs on Canada.
“These data call into question tariffs and other policies and policy justifications that treat the threat from the northern border as comparably severe (to the U.S.-Mexico border),” the report reads.
By weight, about 99 per cent of fentanyl pills, capsules or tablets and 97 per cent of powder, resin or tar gathered in large, land-boundary seizures between 2013 and 2024 were discovered in U.S.-Mexico border counties, according to the report.
And U.S. Customs and Border Protection (CBP) data show that of the 4,376 total fentanyl seizures counted by CBP between October 2021 and February 2025, just 241 occurred at Canada-U.S. boundaries, and only 162 of those were along the land border between the two countries.
“Counties along the Canadian border are not an important part of this story,” the report concludes.
“Whatever the merits or drawbacks of tariffs on imports from Canada … such actions cannot be justified as part of a pragmatic and data-informed response to the threat of fentanyl to the United States.”
Charlie Buckley, CTVNews.ca journalist
10:20 a.m. EDT: Trump: ‘We’ve been taken advantage of’
Asked for his advice to countries ahead of tariff deadlines, Trump told reporters those nations should “just keep working hard,” and that “it’s all going to work out.”
Trump was asked shortly before taking off for a trip to central Texas to survey damage from recent floods.
U.S. President Trump speaks on America being ‘taken advantage of’ by Canada and other trade partners in the past.
“We’ve been taken advantage of for many, many years by countries, both friend and foe,” he said Friday. “Frankly, the friends have been worse than the foes, in many cases.”
Charlie Buckley, CTVNews.ca journalist
President Donald Trump speaks with reporters before departing the White House, Friday, July 11, 2025, in Washington. (AP Photo/Evan Vucci)
9:35 a.m. EDT: CUSMA-compliant goods likely won’t be hit: official
A White House official speaking to CTV News says Trump’s new 35 per cent tariff threat likely won’t impact Canadian imports that are compliant under the Canada-U.S.-Mexico Agreement (CUSMA).
It means goods already tariffed at 25 per cent and not protected under CUSMA could be tariffed by 35 per cent on Aug. 1. Tariffs on some energy-related products and potash are expected to remain at 10 per cent.
But the official also tells CTV News that Trump has made “no final decisions” and “no final paper has been drafted.”
Stephanie Ha, CTV News journalist
CTV’s Jeremie Charron says even though U.S. President Trump has declared he will add 35 per cent tariffs on Canadian good, nothing is official as of yet.
9 a.m. EDT: Canada needs to ‘work around the clock’: Ford
Ontario’s premier called on the federal government to act with urgency to strike a deal with U.S. in the face of new looming tariffs.
“Now more than ever, we need the federal government to work around the clock to secure a deal that is right for Canada and eliminates all American tariffs,” Ontario Premier Doug Ford’s office said in a statement.
Bryann Aguilar, CP24.com journalist
FILE: Premier of Ontario Doug Ford speaks to media prior the First Minister’s Meeting in Saskatoon on Monday, June 2, 2025. THE CANADIAN PRESS/Liam Richards
Read Trump’s letter
Trump posted the following letter, addressed to Prime Minister Mark Carney, on Truth Social Thursday evening.
“Dear Mr. Prime Minister:
“It is a Great Honor for me to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship, and the fact that the United States of America has agreed to continue working with Canada, despite Canada having financially retaliated against the United States. 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. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs. Goods transshipped to evade this higher Tariff will be subject to that higher Tariff. As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely – In other words, in a matter of weeks.
“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% that we charge.
“Also, I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States. Canada charges extraordinary Tariffs to our Dairy Farmers – up to 400% – and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada. The Trade Deficit is a major threat to our Economy and, indeed, our National Security!
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider and adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with you Country. You will never be disappointed with The United States of America.
“Thank you for your attention to this matter!
“With best wishes, I am,
“Sincerely,
“DONALD J. TRUMP
“PRESIDENT OF THE UNITED STATES OF AMERICA”
Canada's Prime Minister Mark Carney, left, and U.S. President Donald Trump leave after a family photo session during the G7 Summit, in Kananaskis, Alberta, Monday, June 16, 2025. (Suzanne Plunkett/Pool Photo via AP)
Carney responds
In response to Trump’s letter, Carney published the following post 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.”
The “revised deadline” is in reference to a shift from July 21, the date by which the two leaders agreed to ink a trade deal.
Prime Minister Mark Carney holds a closing press conference following the NATO Summit in The Hague, Netherlands on Wednesday, June 25, 2025. THE CANADIAN PRESS/Sean Kilpatrick (Sean Kilpatrick)
Edited by CTVNews.ca’s Luca Caruso-Moro
Edited by CTVNews.ca’s Luca Caruso-Moro
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