U.S. President Donald Trump threatened to impose 35 per cent tariffs on Canadian imports on Aug. 1 in a letter to Prime Minister Mark Carney posted on social media Thursday night.
Trump said if Canada works to stop the flow of fentanyl into the United States he may consider a tariff adjustment.
“I must mention the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States,” the letter said.
Trump pointed to supply management in the dairy sector, repeating his inaccurate claim about Canada putting 400 tariffs on American dairy farmers. The president said the trade deficit with Canada is a threat to the American economy and national security.
Prime Minister Mark Carney responded to Trump’s threats late Thursday evening in social media that said, “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 says Canada has made “vital progress” to stop fentanyl across the border.
“We are committed to continuing to work with the United States to save lives and protect communities in both our countries,” he added.
Carney also pointed to a several measures his government has taken to offset the negative effects of a trade war.
“The federal government, provinces and territories are making significant progress in building one Canadian economy,” he wrote. “We are poised to build a series of major new projects in the national interest. We are strengthening our trading partnerships throughout the world.”
Meanwhile, a spokesperson for Ontario Premier Doug Ford told CityNews, “Now more than ever, we need the federal government to work around the clock to secure a deal that is right for Canada and eliminates all American tariffs.”
Canada and the United States had committed to working on a new economic and security agreement with a July 21 deadline for a deal.
Trump slapped Canada with 25 per cent tariffs in March, with a lower 10 per cent levy on energy and potash. The president walked back duties on imports compliant under the Canada-U.S.-Mexico agreement on trade a few days later.
It is unclear whether there’d be any carve out for imports compliant with the trilateral trade pact in Trump’s latest tariff threats.
There are additional tariffs on steel, aluminum and automobiles, as well as a plan to introduce tariffs on copper, also on Aug. 1.
The letter also pointed out that Canada had responded with retaliatory tariffs against the United States after Trump first imposed the duties. Ottawa said its tariffs were targeted on things such as orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35 (per cent) that we charge,” Trump’s letter said.
Trump has sent correspondence to a handful of countries this week outlining higher tariffs they’ll face if they don’t make trade deals by the start of August.
