President Donald Trump just dropped a trade bombshell on Canada. In a letter shared on Truth Social on July 10, he announced a 35% tariff on Canadian goods starting Aug. 1, up from 25%, citing Canada’s failure to curb fentanyl flowing into the U.S., as the Daily Mail reports. This move obliterates hopes of a quick trade deal and signals more global tariff hikes.
Trump’s letter to Canadian Prime Minister Mark Carney reset ongoing U.S.-Canada trade talks, which Canadian officials thought were nearing a deal. The tariff war, sparked by Trump’s return to office, has escalated with Canada retaliating against U.S. goods. It’s a classic Trump power play: disrupt, demand, and dominate.
Since March, Trump has slapped 25% tariffs on steel and aluminum worldwide, followed by 50% sectoral tariffs on steel, copper, and aluminum for most countries by June 4. These moves, including the April 2 “Liberation Day” 10% baseline tariff on most imports, have jacked up costs for American households. Soup cans and refrigerators aren’t cheap anymore, but MAGA sees this as taking back economic control.
Canada, the U.S.’s second-largest trading partner after Mexico, now faces a 35% tariff wall. Trump’s letter complained of Canada’s “tariff, and non-tariff, policies,” a jab at their trade barriers. Carney’s “reliable economic partner” claim on X, posted hours before, looks like wishful thinking next to Trump’s hardball tactics.
Carney, elected in April, has pushed for stronger EU and UK trade ties, but Trump’s not impressed. During Carney’s May 2025 White House visit, Trump bluntly said no arguments would lift the tariffs. That’s Trump: unwavering when America’s interests are on the line.
Trump’s tariff crusade isn’t just about Canada. He’s sent similar letters to 23 countries, with Brazil facing 50% tariffs over its trial of Jair Bolsonaro and Chinese goods hit with up to 145% (later cut to 55% after talks). Mexico’s 25% tariffs, also tied to fentanyl, show Trump is using trade as a geopolitical sledgehammer.
On April 2, Trump’s “Liberation Day” tariffs triggered a market selloff, forcing a 90-day negotiation period. Trade frameworks with the UK, Vietnam, and China kept talks alive, but Canada’s digital services tax briefly stalled its negotiations in June. Carney’s quick reversal of that tax shows he’s scrambling to keep up.
Trump told NBC News he’s ready to raise the baseline global tariff to 20% or 15% for the remaining countries. “All of the remaining countries are going to pay,” he said, sounding like a man who relishes rewriting trade rules. Progressive dreams of open borders and free trade are crumbling under his pen.
Carney’s response? “We will continue to do so,” he said, vowing to defend Canadian workers. But his tough talk feels hollow when Trump’s already reset the board. Canada’s retaliatory tariffs might make headlines, but they’re no match for Trump’s economic leverage.
The tariff hikes are hitting American wallets hard. Everyday items -- paper clips, cars, stainless-steel fridges -- are pricier, and there’s no immediate relief in sight. Yet, some S&P 500 gains hint investors think that Trump might soften his stance, as he’s done before.
Trump’s letter to Carney dangled a carrot: “These tariffs may be modified.” It’s a reminder he’s open to deals, but only on his terms. The left’s whining about consumer costs ignores the bigger picture: America’s economic sovereignty is non-negotiable.
Carney's recent X post involving UK Prime Minister Keir Starmer, touting Canada’s reliability, now reads like a desperate plea for allies. “The world is turning to reliable economic partners,” he claimed. Good luck convincing Trump, who sees Canada as a fentanyl pipeline and trade cheat.
Trump’s defenders argue he’s forcing allies to respect U.S. interests. “The United States has agreed to continue working with Canada,” he said, framing his patience as a favor despite Canada’s retaliation. Critics call it chaos; MAGA calls it genius.
The tariff war’s ripple effects are undeniable. From Brazil to China, countries are bending to Trump’s will or paying the price. Woke globalists who preached free trade are learning a harsh lesson: America First means business.
As Aug. 1 looms, Carney faces a grim deadline. “This will take some time,” he admitted, but time’s not on his side. Trump’s tariff gambit is a bold bet on American strength, and he’s playing to win.
