Trump Threatens 35 Percent Tariff on Canadian Goods Amid Stalled Trade Talks, Citing Fentanyl Concerns
Ottawa, The Gulf Observer: U.S. President Donald Trump has issued a stark ultimatum to Canada, threatening to impose a sweeping 35 Percent tariff on all Canadian goods starting August 1, unless Canadian manufacturers shift production to the United States. The warning, delivered via a public letter addressed to Prime Minister Mark Carney and posted on Trump’s Truth Social platform, adds new urgency to ongoing trade negotiations between the two nations.
“There will be no tariff if Canada, or companies within your country, decide to manufacture product within the United States,” Trump stated in the letter.
The two countries have been embroiled in complex talks to reach a new trade deal, with a self-imposed deadline of July 21. Tensions escalated sharply as Trump cited the alleged flow of fentanyl across the U.S.-Canada border—an assertion contradicted by recent data showing the southern U.S. border remains the primary entry point for the illicit drug.
A New Trade Flashpoint
President Trump’s move follows a series of tariffs already in place under his administration’s border-related tariff regime, including:
- 25% on non-CUSMA-compliant Canadian goods
- 10% on Canadian energy and potash
- Import levies on steel, aluminum, and automobiles, which have impacted Canadian exports and led to job losses.
The White House has further signaled potential tariffs of up to 50% on copper imports from Canada. In 2023, Canada exported $9.3 billion in copper and related products, with over half destined for the U.S.
Despite Ottawa’s $1.3 billion investment in border security and the appointment of a “fentanyl czar,” Trump continues to press for harsher economic measures unless Canadian policies, including its supply management system, are reformed.
Ottawa’s Response and Domestic Fallout
Canadian Foreign Affairs Minister Anita Anand expressed hope that an agreement could still be reached before the deadline. Meanwhile, Conservative Leader Pierre Poilievre denounced the proposed tariffs as “unjustified,” calling on Canadians to unite.
“All Canadians must come together to defend our economy,” Poilievre posted on X. “Conservatives stand ready to secure the best deal for Canada.”
The Liberal government also recently rescinded a planned digital services tax, seen as a concession to Trump’s demands. The tax reversal came just before trade talks resumed following a suspension triggered by U.S. objections.
Global Ramifications
Trump’s letter to Prime Minister Carney was one of several posted within a 24-hour span, targeting countries such as Brazil, the Philippines, Brunei, Moldova, Algeria, Libya, Iraq, and Sri Lanka—indicating a broader revival of Trump’s aggressive tariff diplomacy.
As the July 21 deadline approaches, both nations face rising economic stakes. Canada is bracing for further disruption to its exports, while U.S. manufacturers warn of price hikes and supply chain volatility if tariffs are enacted.
The Prime Minister’s Office has yet to issue an official response.
