In an open letter posted to Reality Social, Trump mentioned the tariffs have been supposed to punish Canada for its alleged failure to cease fentanyl from getting into the U.S. He claimed the measure might be adjusted “upward or downward” relying on the state of Canada–U.S. relations.
“If Canada works with me to cease the move of fentanyl, we’ll, maybe, think about an adjustment to this letter,” Trump wrote. He added that any retaliatory tariffs from Canada could be matched or exceeded by the U.S.
Prime Minister Mark Carney responded late Thursday, saying Canada would goal to achieve a deal by Aug. 1, an extension of the earlier July 21 deadline set on the G7 summit in Alberta final month. Carney defended Canada’s efforts to fight opioid trafficking and emphasised the necessity for continued collaboration.
“Canada has made very important progress to cease the scourge of fentanyl in North America,” Carney posted. “We’re dedicated to persevering with to work with the USA to avoid wasting lives and defend communities in each our nations.”
Trump’s transfer comes simply in the future after asserting a separate 50% tariff on copper imports, one other sector the place Canada is a significant U.S. provider. In 2023, the U.S. accounted for greater than half of Canada’s $9.3 billion in copper exports.
The Trump administration has additionally revived longstanding grievances about Canada’s dairy trade and what Trump referred to as “unsustainable” commerce deficits.
He repeated debunked claims that Canada imposes tariffs of as much as 400% on U.S. dairy merchandise.
Negotiations stay rocky
The sudden escalation follows a tense back-and-forth between the 2 nations. The U.S. quickly paused commerce negotiations in late June over Canada’s digital companies tax. Talks resumed after Ottawa signalled it will shelve the tax as a part of a broader deal.
Whereas Overseas Affairs Minister Anita Anand mentioned Thursday that Canada is “nonetheless hopeful” for a July 21 settlement, former ambassador David MacNaughton referred to as that timeline “not real looking” in an interview with CTV Information.
Trade stakeholders are watching carefully, as a breakdown in talks may result in retaliatory measures from Canada, complicating cross-border provide chains and including to import prices—particularly for sectors reliant on U.S. supplies or export entry.
For now, Canadian negotiators are beneath stress to keep away from a repeat of 2018, when metal and aluminum tariffs sparked a year-long commerce warfare that rippled by means of the housing, development, and manufacturing sectors.
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Anita Anand Canada-US commerce warfare Donald Trump Mark Carney tariffs commerce warfare
Final modified: July 11, 2025