President Donald Trump has warned that Canada will face a 35 percent tariff on its exports to the United States starting August 1. He issued this in a letter to Canadian Prime Minister Mark Carney, adding to over 20 similar letters sent to other global leaders this week as part of his renewed trade war campaign. The warning comes amid ongoing negotiations aimed at revising the United States-Mexico-Canada Agreement (USMCA), which Trump previously restructured during his first term in 2020 to replace the old NAFTA deal.
The trade discussions were initially expected to conclude by July 21, but Trump’s new threat appears to have extended the deadline. Canada and Mexico are both working to meet US demands in a bid to prevent further damage to cross-border trade. Prime Minister Carney responded on social media, assuring that Canada would continue defending its workers and businesses while preparing for the new deadline.
Despite what had seemed to be improving ties between Trump and Carney — including recent meetings at the White House and G7 summit — tensions have flared again. The Canadian government previously agreed to drop digital service taxes on American tech firms after Trump paused talks in response.
Meanwhile, Trump has revealed plans to impose tariffs between 15 and 20 percent on other countries yet to receive his tariff letters. Brazil has been warned it could face duties as high as 50 percent if no agreement is reached. Brazilian President Luiz Inácio Lula da Silva said his administration is open to talks but is considering reciprocal measures. Trump also used the letter to criticize Brazil’s treatment of former president Jair Bolsonaro.
Trump said a similar letter would be sent soon to the European Union, signaling more potential disruptions to global trade before the August 1 deadline.
