Carney says deadline for new deal with U.S. delayed as Trump threatens 35% tariffs on Canada

OTTAWA — Prime Minister Mark Carney says the deadline for a new economic and security deal between Canada and Ottawa has been pushed back to August 1 as U.S. President Donald Trump threatens to increase tariffs on Canadian products to 35 per cent. Carney wrote on social media late Thursday evening that Canada and the U.S. are now working towards a new deadline of Aug. 1 to sign a new trade deal. The original deadline was set for July 21 before shifting Thursday evening. “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,” Carney reacted on social media.

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. Canada has made vital progress to stop the scourge…— Mark Carney (@MarkJCarney) July 11, 2025

His statement made no reference to Trump’s new tariff threat nor did it suggest any immediate retaliatory measures from Canada. Carney has repeatedly said that his government is working to that his government hopes will eliminate all of Trump’s tariffs on Canadian goods. Those include 50 per cent tariffs on all aluminium and steel imports and separate 25 per cent border levies on foreign vehicles and components as well as Canadian goods not covered by CUSMA. Those hopes look increasingly dashed, though, as Trump published an open letter on Thursday threatening to increase existing 25 per cent tariffs on all non-CUSMA goods to 35 per cent on Aug. 1. He once again cited fentanyl smuggling to the U.S. and Canada’s dairy supply management system as irritants. “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,” read Trump’s letter to Carney. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your Country.” Trump ended his letter by noting that Canada “will never be disappointed with The United States of America.”

President Trump’s letter to the Prime Minister of Canada pic.twitter.com/Zk5yd3akS7— Rapid Response 47 (@RapidResponse47) July 11, 2025

The U.S. government’s data shows that trace amounts of fentanyl are intercepted by border guards coming from Canada, particularly when compared to the southern border with Mexico. Trump has also promised 50 per cent tariffs on copper imports — another major Canadian export to the U.S. — as well as eventual tariffs of up to 200 per cent on foreign pharmaceuticals. In his statement, Carney reiterated his government’s commitment to removing internal trade barriers in Canada and working to diversify the country’s trading partners away from the U.S. “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 wrote. The latest Trump threats once again illustrate the increasingly diverging economic views held by Trump and Carney. Speaking to media during the G7 meeting in Alberta last month, Trump said tariffs were a key part of his economic strategy to build up American manufacturing. “I think we have different concepts,” said Trump on trade with Canada. “I have a tariff concept. Mark (Carney) has a different concept, which is something that some people like. But we’re going to see if we can get to the bottom of it today.” More to come. National Post cnardi@postmedia.com

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