President Donald Trump has delivered a crushing blow to trade negotiations between the United States and Canada by threatening to impose devastating 35 percent tariffs on Canadian products beginning August 1.
The escalation represents a significant deterioration in relations between the neighboring nations, which had been attempting to resolve ongoing trade disputes since Trump’s return to office earlier this year.
Trump announced the tariff increase through a blistering letter to Canadian Prime Minister Mark Carney, which he shared on Truth Social Thursday night, effectively derailing what Canadian officials believed were near-complete negotiations.
The proposed tariffs represent a 10 percent increase from current levels, marking another escalation in the trade conflict that has dominated relations between the two countries.
Trump cited Canada’s handling of the fentanyl crisis as a primary justification for the punitive measures, stating the country had failed to “stop the drugs from pouring into our country.”
The President expanded his criticism beyond drug enforcement, writing 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.”
Despite the harsh rhetoric, Trump acknowledged ongoing cooperation efforts, noting that “the fact the United States has agreed to continue working with Canada, despite Canada having financially retaliated against the United States” demonstrates America’s “deep commitment to our trading relationship.”
The letter included a direct warning to Carney about potential further escalation, with Trump vowing to continue increasing tariffs if Canada implements retaliatory measures.
Trump offered a potential path forward, suggesting he would consider “an adjustment to this letter” if “Canada works with me to stop the flow of Fentanyl.”
The President made clear that future tariff levels would depend on bilateral relations, writing that “These tariffs may be modified, upward or downward, depending on our relationship with your country.”
The new tariffs would compound existing sectoral tariffs on steel, copper and aluminum, which reached 50 percent for most countries when they took effect June 4.
These metals had previously faced 25 percent tariffs worldwide since mid-March, when Trump removed steel exemptions and increased aluminum levies.
The escalating tariff regime has raised concerns about increased costs for American consumers, as foreign-made steel and aluminum appear in everyday products ranging from soup cans to refrigerators and automobiles.
Recent performance in the S&P 500 stock index suggests investors believe Trump may ultimately reduce the increases, based on his past patterns of tariff negotiations.
The Canada letter follows similar communications Trump has sent to leaders globally this week as he threatens widespread tariff increases reminiscent of his April 2 “Liberation Day” announcement.
The Daily Mail reported that Trump had previously imposed a baseline 10 percent tariff on most imported goods worldwide following a market selloff that triggered global economic concerns.
The outlet further noted that when speaking to NBC News this week, Trump indicated willingness to double existing tariffs, stating: “We’re just going to say all of the remaining countries are going to pay, whether it´s 20 percent or 15 percent.”
The decision to target America’s second-largest trading partner after Mexico caught many observers off guard, given the extensive economic ties between the nations.
Carney responded swiftly to Trump’s letter, posting on X Thursday night that “Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses.”
The Canadian leader affirmed his government’s commitment to protecting national interests while working toward the revised August 1 deadline.
Canada has emerged as a particular source of frustration for Trump during his second term, implementing retaliatory tariffs on American goods and rejecting his suggestions about Canadian statehood.
Carney, who was elected prime minister in April on a platform of keeping Canada’s “elbows up,” has pursued a strategy of diversifying Canada’s international relationships.
The Canadian leader has worked to strengthen ties with the European Union and United Kingdom while maintaining distance from traditional American partnerships.
Hours before receiving Trump’s letter, Carney posted a photograph with British Prime Minister Keir Starmer, declaring that “in the face of global trade challenges, the world is turning to reliable economic partners like Canada.”
When Carney visited the White House in May, the public portions of their meeting appeared cordial, though Trump indicated inflexibility on tariff removal.
Trump stated at the time that there was nothing the Canadian leader could tell him to eliminate the tariffs, saying “Just the way it is.”
Carney had indicated patience with the negotiation process, acknowledging that “There are much bigger forces involved” and “this will take some time and some discussions.”
The Canada letter represents part of a broader tariff campaign, with Trump having sent similar communications to 23 countries so far.
Brazil received a 50 percent tariff related to the ongoing trial of former president Jair Bolsonaro for his attempts to remain in office after his 2022 election defeat.
Trump has announced trade frameworks with the United Kingdom and Vietnam, along with a separate agreement with China to enable continued negotiations.
Chinese goods face tariffs as high as 145 percent, though Trump has indicated total Chinese tariffs of 55 percent following ongoing discussions.
Trade talks with Canada were suspended in June over Canada’s digital services tax affecting American technology companies, though discussions resumed when Carney rescinded the tax.
Mexico has also faced 25 percent tariffs due to fentanyl-related concerns, demonstrating the administration’s focus on drug enforcement in trade policy.
The post Trump Throws Grenade on U.S.-Canadian Relations by Slamming Ally With Devastating 35% Tariff Threat as Trade War Explodes appeared first on Resist the Mainstream.
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Author: Jordyn M.
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