Mark Carney Responds to Donald Trump’s 35% Tariff Threat to Canada

Canada’s Prime Minister Mark Carney has responded to President Donald Trump‘s threats to impose a 35 percent tariff on Canada from August 1.

Trump published a letter to Carney on Truth Social on Thursday, accusing Canada of having “financially retaliated against the United States.”

“As you will recall, the United States imposed tariffs on Canada to deal with our nation’s fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our country. Instead of working with the United States, Canada retaliated with its own Tariffs,” he said.

In response, Carney vowed to defend Canadian economic interests and reaffirmed Canada’s commitment to cooperative efforts with Washington, including curbing the fentanyl crisis.

“We are committed to continuing to work with the United States to save lives and protect communities in both our countries,” he said.

Left: President Donald Trump speaking on board Air Force One in July. Right: Prime Minister Mark Carney speaking at the NATO summit in The Hague in June.
Left: President Donald Trump speaking on board Air Force One in July. Right: Prime Minister Mark Carney speaking at the NATO summit in The Hague in June.
AP
Why It Matters

The economic fallout from the proposed tariffs could be severe. Canada exports about three-quarters of its goods to the U.S., and key sectors such as automotive manufacturing and metals are particularly vulnerable to the levies.

Trump’s blanket 35 percent tariff is separate from existing U.S. duties on steel, aluminum, and automobiles, which already weigh heavily on Canadian industries.

The proposed tariff escalation comes during an already fragile moment in U.S.-Canada relations. The two nations have been negotiating updates to their trade and security agreements following Trump’s demands for stricter cross-border controls and trade rebalancing.

What To Know

Responding to Trump, Carney wrote on X: “Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1.

“Canada has made vital progress to stop the scourge of fentanyl in North America.”

He added: “We are building Canada strong. The federal government, provinces and territories are making significant progress in building one Canadian economy. We are poised to build a series of major new projects in the national interest. We are strengthening our trading partnerships throughout the world.”

At a G7 summit in June, Carney and Trump agreed to a 30-day window to finalize a deal, but those talks appear to have stalled.

Since January, Trump has repeatedly attacked Canada, one of the U.S.’s staunchest allies and among its biggest trading partners, accusing it of taking advantage of the U.S. and saying it should become the 51st state.

Carney made headlines when he visited the White House in May and told Trump Canada was “not for sale.” Trump replied: “Time will tell.”

What People Are Saying

After winning Canada’s federal election in April, Carney said: “As I’ve been warning for months, America wants our land, our resources, our water, our country. These are not idle threats.

“President Trump is trying to break us so America can own us. That will never, ever happen. But we also must recognize the reality that our world has fundamentally changed.”

Trump said previously about Canada:”Economically we have such power over Canada. We’d rather not use it. It’s not going to work out well for Canada. They were foolish to do it.”

What Happens Next

Talks between Canadian and U.S. officials are expected to continue over the next three weeks ahead of the August 1 deadline.

Canada has threatened countermeasures should the tariffs go into effect, but specifics remain unclear.