WASHINGTON — In a surprise late-night missive, President Donald Trump informed Canadian Prime Minister Mark Carney that nearly all Canadian exports will be hit with a 35 percent tariff beginning August 1—an abrupt escalation that threatens to derail the fragile US-Canada trade détente.
A tariff blitz in motion
The letter to Ottawa is the latest in a flurry of more than 20 similar notices Trump has dispatched since Monday, widening what is fast becoming a worldwide tariff offensive. The president hinted during an NBC interview that nations yet to receive a letter should brace for levies of 15 – 20 percent.
What still gets a pass
According to a senior administration official, products already compliant with the United States-Mexico-Canada Agreement (USMCA) will continue to enter tariff-free, and Canadian energy exports may face a gentler rate—although the final call remains with Trump.
Deadline reset
Negotiators had been working toward a July 21 deal. Trump’s salvo effectively pushes the finish line to August 1, the day the new duties kick in. Canada and Mexico now scramble to salvage the USMCA review, originally slated for mid-2026.
“Throughout these talks, we’ve stood firm for Canadian workers and businesses—and we will keep doing so right up to the revised deadline,” Carney posted on X late Thursday.
From NAFTA 2.0 to tariff turmoil
The USMCA replaced NAFTA in July 2020 after Trump pushed for a reboot. But the agreement’s first scheduled review is now clouded by the president’s broadening tariff campaign, justified by the White House as leverage over immigration and fentanyl trafficking—despite official data showing Canada supplies less than 1 percent of illicit US fentanyl.
Exemptions with strings
Trump ultimately carved out USMCA-qualifying goods and certain Canadian energy products from his earlier 25 percent tariff. Thursday night’s increase, however, signals a willingness to escalate unless Ottawa concedes on unspecified “reciprocity” demands.
Global ripple effects
In the same NBC interview, Trump revealed he is weighing blanket tariffs on countries untouched so far, and letters to the European Union and Brazil are imminent—Brazil faces rates up to 50 percent absent a new deal. Brazilian President Luiz Inacio Lula da Silva has already warned that Brasília is preparing “reciprocity measures” even as it remains open to talks.
G7 goodwill evaporates
Just weeks ago, Carney’s charm offensive—from a cordial May 6 White House visit to a G7 plea for restraint—seemed to thaw relations. Canada even scrapped digital-tax plans that had irked Washington. The warmth, however, did little to prevent Trump’s latest tariff thunderbolt—leaving North America’s trade future once again on uncertain ground.
