Ottawa (Rajeev Sharma): Canadian Prime Minister Mark Carney on Thursday pledged to stand firm in defense of Canadian workers and businesses as the August 1 deadline looms for sweeping new U.S. tariffs on Canadian goods. The move comes after U.S. President Donald Trump announced a dramatic escalation in duties on a wide range of Canadian imports, hiking tariffs to 35%, intensifying trade tensions between the two allies.
In a post shared on the social media platform X, Carney emphasized Canada’s commitment to protecting its economic sovereignty and workforce amid the ongoing dispute.
“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,” Carney wrote.
Trump’s move is reportedly aimed at pressuring Canada to act more aggressively in curbing the flow of fentanyl — a synthetic opioid at the center of America’s drug crisis — despite limited evidence tying Canadian sources directly to the epidemic.
Responding to that accusation, Carney highlighted Canada’s continued efforts to tackle the fentanyl crisis in coordination with U.S. agencies.
“Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries,” he said.
Trump’s letter, posted on his Truth Social platform, confirmed the August 1 tariff hike would build on the 25% duties already in place since March, calling them a necessary tool to force Canada’s hand.
“Starting August 1, 2025, we will charge Canada a tariff of 35% on Canadian products sent into the United States… Instead of working with the United States, Canada retaliated with its own tariffs,” Trump wrote, accusing Ottawa of non-cooperation.
In an aggressive warning, Trump added that any further retaliatory action from Canada would be met with matching tariff increases. However, he left the door open for Canadian manufacturers to relocate operations to the U.S., offering expedited regulatory approvals.
The letter marks a fresh flashpoint in U.S.-Canada trade relations, which had been gradually recovering after years of NAFTA-related disputes. While Trump has issued similar warnings to other trade partners this week, Canada — the U.S.’s second-largest trading partner after Mexico — appears to be a particular focus of his administration’s ire.
Carney, who assumed office in April with a clear mandate to reduce economic dependence on the United States, has already begun forging stronger trade alliances. Just hours before Trump’s letter was made public, the Canadian Prime Minister posted a photo alongside UK Prime Minister Keir Starmer, noting:
“In the face of global trade challenges, the world is turning to reliable economic partners like Canada.”
Canada has also pushed back against what it views as bullying rhetoric, flatly rejecting Trump’s previous jibes about making Canada the “51st state.” Ottawa has implemented a round of retaliatory tariffs and is considering further action should Washington proceed with the 35% hike.
As trade tensions rise, Carney stressed unity and resilience:
“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 and are strengthening our trading partnerships throughout the world.”
With less than three weeks to go until the deadline, observers are watching closely to see whether negotiations can de-escalate what is fast becoming a major cross-border trade standoff.
