Washington D.C., Aug 1, 2025
Trump had earlier imposed a 25% tariff on Canadian goods, which has now been increased. The White House issued a late-night statement on Thursday, declaring that Canada has failed to take sufficient action against smugglers, criminal networks, and drug traffickers. Trump had previously warned that if no agreement was reached by Friday, additional tariffs would be imposed.
Trump Pushes Trade Pressure
In a related executive order, Trump stated that while some trade partners have aligned with U.S. expectations on economic and national security matters, others—including Canada—have failed to address trade imbalances or cooperate sufficiently.
The former president is using these tariffs to pressure countries into favorable trade and security agreements, suggesting that tariffs will be lifted only for nations that align more closely with U.S. interests.
Trump’s Growing Friction with Canada
Trump’s frustration with Canada has deepened recently, especially after Canada recognized Palestine as a state, a move he sharply criticized. Trump remarked that this recognition could further complicate trade negotiations with Canada.
He also previously made controversial statements suggesting that Canada could become the "51st state" of the U.S., emphasizing his discontent over ongoing diplomatic and trade issues.
Canada Responds: “Deeply Disappointed”
Canadian Prime Minister Mark Carney responded on Friday morning, expressing disappointment with Trump's actions. He reiterated that Canada would only enter into trade agreements that serve the interests of the Canadian people.
Carney also noted that Canada accounts for just 1% of the U.S.’s fentanyl imports, and his government is actively working to reduce even that small percentage. He warned that sectors like lumber, steel, aluminum, and automobileswould be affected by the tariff hike but assured that measures will be taken to protect Canadian jobs and industries.
Carney also emphasized Canada’s intent to diversify its export markets, signaling a potential shift away from heavy dependence on U.S. trade.
000
