Trump targets Canada with 35% tariff; will defend country’s workers and businesses, says PM Mark Carney
In a bold and controversial move, former U.S. President Donald Trump announced a sweeping 35% tariff on Canadian goods, escalating tensions between the neighboring nations and igniting fears of a renewed trade war. The tariffs, set to take effect from August 1, 2025, target Canadian imports not covered under the USMCA (United States-Mexico-Canada Agreement), excluding specific energy and fertilizer products.
Trump’s decision—delivered during a press conference in Ohio—was framed as an effort to hold Canada accountable for what he labeled “unchecked fentanyl flows” and “unfair non-tariff barriers,” particularly related to the Canadian dairy sector. “The U.S. has been far too patient,” he said. “Canada must clean up its act, or face the consequences.”
🔥 The Tariff Breakdown
The newly announced 35% tariff marks a significant increase from the prior 25% level imposed during Trump’s previous administration. While the tariffs will not apply to certain categories protected under USMCA, Trump warned that further escalation is possible if Canada responds with retaliatory measures.
According to Trump’s campaign, the decision stems from a “lack of measurable progress” in stemming illegal drug smuggling across North America’s borders, combined with Canada’s continued use of domestic trade barriers that allegedly disadvantage American producers.
The tariffs come amid broader Republican rhetoric promoting protectionist policies aimed at revitalizing U.S. manufacturing and reducing dependence on foreign goods. Trump has also signaled his intention to impose 15–20% tariffs on other trading partners, including Japan, South Korea, and the European Union.
🇨🇦 Mark Carney Responds: “Canada Will Not Back Down”
Canada’s Prime Minister Mark Carney, in a strongly worded response posted on X (formerly Twitter), condemned Trump’s move, calling it “unjustified and economically harmful.”
“Canada has steadfastly defended our workers and businesses, and we will continue to do so. This government will always stand up for Canadian jobs, Canadian industries, and Canadian sovereignty.” — PM Mark Carney
Carney also pushed back against Trump’s claims about fentanyl smuggling, emphasizing that Canada has worked closely with U.S. agencies in recent months to disrupt drug networks and strengthen border controls. “We have made vital progress on fentanyl enforcement and intelligence sharing,” he stated, while reaffirming Canada’s commitment to resolving trade tensions through dialogue—not tariffs.
⚙️ Impact on Trade and Industry
The looming tariffs have sent shockwaves through both Canadian and American industries. Canadian manufacturers, particularly those in steel, lumber, and agricultural sectors, fear a major disruption to cross-border commerce. Small and medium-sized enterprises (SMEs) that rely on U.S. contracts are especially vulnerable.
Trade analysts warn the new tariffs could cost billions in lost revenue and spark retaliatory action by Canada, potentially targeting U.S. exports like dairy, processed foods, and automotive parts.
Dr. Lina Boudreau, a trade economist at the University of Toronto, noted, “We’ve seen this movie before in 2018–2019. If this escalates, both sides lose. Supply chains are deeply integrated between the U.S. and Canada, and any friction has ripple effects.”
American businesses also stand to suffer. U.S.-based companies that depend on affordable Canadian inputs—such as paper, timber, or chemicals—will likely face increased production costs. This could lead to price hikes for American consumers, just as inflationary pressures begin to ease.
📊 What’s Next? Negotiations Continue
Behind the scenes, officials from both countries are racing against the clock to negotiate a resolution before the August 1 deadline. Reports indicate that Canada had previously requested a July 21 deadline to finalize a revised cooperation agreement with Washington, but this has now shifted due to Trump’s announcement.
Sources suggest Ottawa is open to new enforcement measures on fentanyl trafficking and may consider changes to some agricultural practices—but not under threat.
“We’re not going to negotiate with a gun to our head,” one senior Canadian official said. “But we are willing to discuss areas of mutual concern.”
🌐 Global Repercussions and Political Fallout
Trump’s move has also raised concerns among global allies. European and Asian governments are reportedly watching the situation closely, worried that Trump’s strategy could signal a broader return to aggressive unilateral tariffs if he returns to office.
Domestically, Trump’s announcement plays well with his base. Promoting economic nationalism has been a centerpiece of his 2024 campaign, and many Republican lawmakers have supported the 35% tariff.
However, some U.S. businesses and trade groups are pushing back. The U.S. Chamber of Commerce issued a statement warning that “blunt trade measures hurt American workers and consumers” and called for constructive dialogue with Canada.
Meanwhile, Carney’s handling of the situation could define a major chapter in his young tenure as Prime Minister. Elected on promises of steady leadership and pragmatic diplomacy, Carney now faces a critical test of his international strategy and domestic support.
🧭 Conclusion
As the August 1 deadline looms, the clock is ticking on one of the most serious trade showdowns between the U.S. and Canada in years. With economic stakes high and political tensions flaring, the coming weeks could reshape the contours of North American trade for the foreseeable future.
Will diplomacy prevail—or are we witnessing the first salvo of a new North American trade war?
