In an open letter posted to Truth Social, Trump said the tariffs were intended to punish Canada for its alleged failure to stop fentanyl from entering the U.S. He claimed the measure could be adjusted “upward or downward” depending on the state of Canada–U.S. relations.
“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote. He added that any retaliatory tariffs from Canada would be matched or exceeded by the U.S.
Prime Minister Mark Carney responded late Thursday, saying Canada would aim to reach a deal by Aug. 1, an extension of the previous July 21 deadline set at the G7 summit in Alberta last month. Carney defended Canada’s efforts to combat opioid trafficking and emphasized the need for continued collaboration.
“Canada has made vital progress to stop the scourge of fentanyl in North America,” Carney posted. “We are committed to continuing to work with the United States to save lives and protect communities in both our countries.”
Trump’s move comes just one day after announcing a separate 50% tariff on copper imports, another sector where Canada is a major U.S. supplier. In 2023, the U.S. accounted for more than half of Canada’s $9.3 billion in copper exports.
The Trump administration has also revived longstanding grievances about Canada’s dairy industry and what Trump called “unsustainable” trade deficits.
He repeated debunked claims that Canada imposes tariffs of up to 400% on U.S. dairy products.
Negotiations remain rocky
The sudden escalation follows a tense back-and-forth between the two countries. The U.S. temporarily paused trade negotiations in late June over Canada’s digital services tax. Talks resumed after Ottawa signalled it would shelve the tax as part of a broader deal.
While Foreign Affairs Minister Anita Anand said Thursday that Canada is “still hopeful” for a July 21 agreement, former ambassador David MacNaughton called that timeline “not realistic” in an interview with CTV News.
Industry stakeholders are watching closely, as a breakdown in talks could lead to retaliatory measures from Canada, complicating cross-border supply chains and adding to import costs—especially for sectors reliant on U.S. materials or export access.
For now, Canadian negotiators are under pressure to avoid a repeat of 2018, when steel and aluminum tariffs sparked a year-long trade war that rippled through the housing, construction, and manufacturing sectors.
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Last modified: July 11, 2025