U.S. President Donald Trump is threatening to slap a 35 per cent tariff on all Canadian goods as the two countries have been engaged in negotiations to reach some sort of trade agreement.
Trump’s latest threat came in a letter to Prime Minister Mark Carney that the president posted to his social media site, Truth Social, on Thursday evening.
“There will be no tariff if Canada, or companies within your country, decide to manufacture product within the United States,” the letter read.
Trump said the tariffs will take effect on Aug. 1, and wrote that he will increase the levies if Canada retaliates.
Trump and Carney have been locked in negotiations to come to some sort of trade resolution by July 21. Carney’s office said he had received the letter, and the prime minister said in a social media post he was committed to defending Canadian workers and businesses.
While Carney said Canada would negotiate to the revised deadline date, he also added the country was “strengthening our trade partnerships throughout the world.”
In his letter, Trump again cited fentanyl “pouring” into the U.S. from Canada — even though data continues to show that minimal amounts of the drug are crossing the Canada-U.S. border compared to the U.S.’s southern border.
Trump has been complaining about fentanyl crossing the northern border since he was re-elected in November. After taking office, he imposed tariffs he said are designed to punish Canada for not doing enough to crack down on the fentanyl drug trade.
Carney said in his statement that Canada had made “vital progress” in stemming the flow of fentanyl.
“We are committed to continuing to work with the United States to save lives and protect communities in both our countries,” he said.
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