OTTAWA – Prime Minister Mark Carney said the Canadian government will “steadfastly” defend workers and businesses following the latest trade threats by U.S. President Donald Trump.
In a 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.
Trump wrote that if Canada works to stop the flow of fentanyl into the United States, he may consider a tariff adjustment.
The president also took aim at Canada’s dairy sector and supply management, saying American dairy farmers are charged “up to 400%” in tariffs if they “even have access to sell their products” in Canada.
Trump again said the United States’ trade deficit with Canada is a threat to its “Economy and, indeed, (its) National Security.”
The trade deficit between the two countries is primarily driven by American imports of Canadian oil at below market value.
A White House official said that 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, plus energy and potash imports that face a 10 per cent tariff rate.
The official also said no final policy paper has been drafted and Trump has not yet made a final decision.
Candace Laing, CEO of the Canadian Chamber of Commerce, said that these tariffs would mean higher prices for Americans and continue to damage the “most productive trade relationship two countries have ever had.”
“Rather than public threats and ultimatums, the Canadian Chamber hopes to see both governments continue their ongoing talks in good faith and behind closed doors, with the aim of reaching a real and reliable economic and security relationship in the near term. Only this will benefit businesses and workers in both countries,” Laing said in a media statement.
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.
This report by The Canadian Press was first published July 11, 2025.
