U.S. President Donald Trump said Prime Minister Mark Carney responded positively to his threat of imposing a sweeping 35 per cent tariff on Canada, citing Canada’s alleged mishandling of fentanyl and long-standing trade barriers.
Trump announced the new 35 per cent tariffs on Canadian goods starting August 1 in a letter posted on Truth Social on Thursday evening. At the time, Carney was on vacation at an undisclosed location. In the letter, Trump noted that any retaliatory tariff will be matched and added on top of the 35 per cent tariff.
While speaking to reporters at the White House Friday morning, Trump sounded hopeful after receiving a call from Canada.
“We’re going to see. (The tariff threat letter) was sent yesterday. They called, I think it was fairly well received,” Trump told reporters. “(It’s) what we need, so we’ll see what happens.”
When asked more broadly about countries attempting to reach a deal with the U.S. ahead of the upcoming tariff deadline, Trump said they need to keep working hard and reaffirmed his stance that the U.S. has historically been taken advantage of.
“Frankly, the friends have been worse than the foes in many cases,” Trump told reporters. “So I would say just keep working and it’s all going to work out.”
According to the Globe and Mail, a protected source told the outlet that the tariffs will likely exempt any products under the United States-Mexico-Canada Agreement, though no final decisions have been made.
Before the recent 35 per cent tariff threat, Canadian exports to the U.S. not under the USMCA agreement have been tariffed at 25 per cent since February. Canadian aluminum and steel exports have faced a 50 per cent tariff since the beginning of June, and Canadian energy is taxed at 10 per cent.
Conservative Leader Pierre Poilievre criticized the latest tariff threat as “another unjustified attack” on the Canadian economy but signalled a willingness to support any solution that secures the best outcome for Canada.
“Canada has long been a reliable partner and trusted friend to the United States. These tariffs will damage both our countries,” Poilievre said in a post on X. “All Canadians must come together to defend our economy. Conservatives stand ready to do everything we can to secure the best deal for Canada by the July 21 deadline the Prime Minister has set.”
Carney, however, later Thursday night extended the original July 21 deadline he set at the G7 summit to Aug 1 to meet Trump’s new deadline.
In a post on social media, Carney said Canada has made “vital progress” in stopping fentanyl trafficking in North America and is committed to working with the U.S. to protect lives from the drug trade. Carney also lauded Canada’s progress in breaking down interprovincial trade barriers and strengthening partnerships around the world.
Neither leader mentioned Trump’s concern about supply management.
“Canada charges extraordinary tariffs to our dairy farmers — up to 400 per cent — and that is even assuming our dairy farmers even have access to sell their products to the people of Canada,” Trump said in the letter. “The trade deficit is a major threat to our economy and indeed, our national security.”
Carney has yet to announce any change to his vacation schedule.