Trade battle: Canada reacts after Donald Trump slaps 35% tariffs; will US soften its stance?

Canadian Prime Minister Mark Carney on Thursday vowed to defend Canadian employees because the August 1 tariff deadline approaches. This response comes after US President Donald Trump introduced a steep hike in duties on a broad vary of Canadian imports to 35%, a transfer that deepens tensions between the 2 longtime allies.Sharing a submit on X, Carney stated, “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.”He additionally highlighted Canada’s efforts in tackling the fentanyl disaster, a key subject raised by the Trump administration to justify new tariffs.“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 stated.“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. We are strengthening our trading partnerships throughout the world,” he added.In a letter to Carney, Trump stated the 35% tariff hike builds on the 25% duties imposed in March, and will take impact from August 1. The US claims the transfer is supposed to strain Canada to crack down on fentanyl smuggling, regardless of Canada’s restricted position within the drug’s trafficking.“Starting August 1, 2025, we will charge Canada a tariff of 35% on Canadian products sent into the United States, separate from all sectoral tariffs. As you will recall, the United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our Country. Instead of working with the United States, Canada retaliated with its own Tariffs,” Trump stated in his letter on his Truth Social.Trump additionally warned in opposition to retaliatory measures from Ottawa, saying any extra tariffs imposed by Canada can be matched and added on prime of the prevailing 35%. However, he provided an olive department of kinds, urging Canadian firms to relocate manufacturing to the US. “As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely — In other words, in a matter of weeks. 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,” he added.Although Trump despatched comparable tariff letters to a number of nations this week, Canada, the US’s second-largest buying and selling associate after Mexico, has grow to be a selected goal. Ottawa has pushed again with retaliatory tariffs and rejected Trump’s provocative remarks about making Canada the “51st state.”While Mexico has additionally been hit with 25% tariffs over fentanyl, it has not obtained the identical degree of public criticism from Trump.Carney, who was elected prime minister in April on a platform of defending Canadian pursuits, has since moved to cut back Canada’s dependence on the US by strengthening ties with Europe and the UK.Just hours earlier than Trump’s letter was launched, Carney posted a photograph with UK Prime Minister Keir Starmer on X, writing, “In the face of global trade challenges, the world is turning to reliable economic partners like Canada.”