Trump’s 35% Tariff Threat Against Canada Shakes North American Trade
So here we go again — Donald Trump is once again turning up the heat on Canada, threatening to impose a massive 35% tariff on Canadian imports into the United States starting August 1st . This isn’t just a minor trade tweak; it’s a full-blown economic cannonball aimed at shaking up Canada-U.S. relations.
The former president, now campaigning hard and playing tough, announced that these tariffs would apply to Canadian products across the board — separate from existing sectoral tariffs like those on steel, aluminum, and autos. Trump claimed that fentanyl coming into the U.S. from Canada is one of the justifications, despite U.S. government data and a recent report showing 99% of fentanyl comes through Mexico , not Canada. So, we’re seeing politics wrapped in trade rhetoric — again.
Canadian Prime Minister Mark Carney didn’t waste any time responding. In a firm post on social media, he made it clear that Canada will “defend our workers and businesses” as the two countries continue negotiating a new trade agreement. Carney’s message was direct: Canada isn’t backing down.
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Now, what’s really interesting is the timing. The original trade deal deadline was July 21 , but now Carney is suggesting a revised target of August 1 — lining up precisely with Trump’s tariff ultimatum. Coincidence? Probably not. This has become a high-stakes deadline, and it’s going to be a sprint for both sides to reach a deal.
Some exemptions have been hinted at — for example, goods covered under CUSMA (the Canada-United States-Mexico Agreement) are said to be safe from the 35% tariff. Also, energy and potash exports would still carry the current 10% rate. But here's the kicker: Trump says any Canadian company that moves production to the U.S. will avoid the tariff entirely . That’s a major incentive and, arguably, a very strategic form of pressure.
To make matters more tense, Trump also floated the idea of even steeper tariffs : a 50% tariff on copper, a 200% tariff on pharmaceuticals — both of which would hit Canadian exports hard. Industry Minister Melanie Joly has already fired back, saying Canada is ready to fight these moves.
What’s happening here isn’t just a tariff threat. It’s a pressure tactic, a campaign tool, and a potential reconfiguration of North American trade norms. Trump’s message is clear: build in America or pay the price. For Canada, the message is just as firm: we won’t be bullied.
This situation has the potential to ripple far beyond August. Canadian industries are bracing for impact, American consumers could see price spikes, and diplomatic ties are being tested once again under Trump’s America-first lens. It’s shaping up to be a summer of tariffs, tension, and high-stakes negotiation — and all eyes are on August 1.
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