Trump said in an open letter to the Truth Society that the tariffs were intended to punish Canada’s alleged failure to prevent fentanyl from entering the United States, claiming that measures could be adjusted “upward or downward” based on the situation of Canadian-U.S. relations.
“If Canada works with me to stop the flow of fentanyl, we may consider adjustments to the letter,” Trump wrote, adding that any retaliatory tariffs in the United States would match or exceed the United States,” he added.
Prime Minister Mark Carney responded late Thursday, saying Canada’s goal is to reach a deal by August 1, a deadline extended last month at the G7 summit in Alberta. Carney defends Canada’s efforts to combat opioid trafficking and stresses the need for continued cooperation.
“Canada has made crucial progress to stop the fentanyl scourge in North America,” Carney said. “We are committed to continuing to work with the United States to save lives and protect communities in both of our countries.”
Trump’s move comes just one day after announcing another 50% tariff on copper imports, another area where Canada is a major U.S. supplier. In 2023, the United States accounted for more than half of Canada’s 9.3 billion Canadian copper exports.
The Trump administration has also recovered long-term dissatisfaction with the Canadian dairy industry and Trump’s so-called “unsustainable” trade deficit.
He repeatedly debunked that tariffs on American dairy products are as high as 400%.
Negotiations are still difficult
The sudden escalation was a situation of tension between the two countries. The United States temporarily suspended trade negotiations on Canada’s digital service tax in late June. Ottawa said it would put taxes on hold as part of a wider deal, after talks were held.
Although Foreign Minister Anita Anand said on Thursday that Canada was “still full of hope” in the July 21 deal, former ambassador David Macnaughton called the timeline “unrealistic” in an interview CTV News.
Industry stakeholders are paying close attention as the breakdown of negotiations could lead to Canadian retaliation measures that complicate cross-border supply chains and increase import costs, especially in industries that rely on U.S. materials or export access.
Currently, Canadian negotiators are under pressure to avoid repeated 2018, when steel and aluminum tariffs sparked a year-long trade war that broke out in the housing, construction and manufacturing sectors.
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Anita Anand Canada – US Trade War Donald Trump Mark Carney Tariff Trade War
Last modified: July 11, 2025
