Donald Trump threatens 35 per cent tariff on all Canadian goods

U.S. President Donald Trump is threatening to escalate the trade war with Canada — again. He’s announced a 35 per cent tariff on all Canadian goods starting Aug. 1.

The reason? Fentanyl and dairy, according to the president.

Trump’s notice came in an open letter to Prime Minister Mark Carney that was posted to Truth Social last night.

“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% that we charge,” the letter reads.

Trump continues to claim the tariffs were originally set to manage the fentanyl crisis in the U.S., which he says is made worse by “Canada’s failure to stop the drugs from pouring into our country.”

According to Government of Canada statistics, fentanyl seizures at the Canada-U.S. border represented less than 0.1 per cent of all U.S. fentanyl seizures between 2022 and 2024.

The notice also claims that Canada imposes up to 400 per cent tariffs on U.S. dairy products. However, this framing is misleading.

While those dairy tariffs do exist, they only apply to products that exceed Canada’s tariff rate quotas. In practice, annual U.S. dairy exports do not come close to reaching that quota, which means they do not face tariffs at all.

Prime Minister Carney responded promptly, saying Canada is committed to working with the United States to protect communities on both sides of the border and will continue to negotiate a trade deal by the new deadline of Aug. 1.

“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 1st,” Carney said.

Unifor released a statement Friday afternoon calling the latest tariff threat “economic extortion.”

“There’s only one answer to this extortion from the U.S. president: push back — hard,” Unifor National President Lana Payne said.

“Canada must use every bit of leverage we have. Workers are counting on our government to defend their jobs and industries. Concessions won’t stop a bully, but collective strength will. […] Trump’s playbook is clear, implement and threaten sky-high tariffs to condition us into accepting a lower baseline tariff as the new normal. We must never fall for it.”

This new 35 per cent tariff rate is a significant jump from the 25 per cent that Trump already assigned to Canada, and appears to be separate from the tariffs imposed on steel, aluminum and imported vehicles.

If Trump goes ahead with this new rate, it’s unclear whether the exemption for goods covered by the Canada-United States-Mexico Agreement will remain in place.

In a statement early Friday morning, the Ontario Premier’s office said, “We need the federal government to work around the clock to secure a deal that is right for Canada and eliminates all American tariffs.”

Doug Ford added that Prime Minister Carney has accepted his invitation to attend an Ontario First Ministers’ meeting in Huntsville on July 22.

READ MORE: Trump sets start date for 50 per cent tariffs on copper imports