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PM Carney Slams Trump’s 35% Tariff Plan, Vows to Defend Canadian Industry

Tensions have escalated between the United States and Canada following President Donald Trump’s declaration of a 35% tariff on all Canadian imports.

Last Updated : Friday, 11 July 2025
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International News: Tensions have escalated between the United States and Canada following President Donald Trump’s declaration of a 35% tariff on all Canadian imports. In a sharp and assertive response, Canadian Prime Minister Mark Carney has vowed that his government will steadfastly defend the nation’s industries, workers, and economic sovereignty.

Taking to social media platform X (formerly Twitter) on Thursday night, Carney issued an official statement denouncing the decision and reiterating Canada’s firm stance in ongoing trade negotiations.

“The Canadian government has consistently defended our businesses and workers during trade talks, and we will continue to do so as we approach the revised deadline of August 1,” the Prime Minister wrote.

Cooperation on Fentanyl, But Not at the Cost of Sovereignty

Carney also addressed joint efforts to combat the fentanyl crisis, noting that Canada has made considerable progress in curbing the flow of the deadly synthetic opioid across North America. He reaffirmed Canada’s willingness to work collaboratively with the United States on public health and safety.

However, Carney drew a clear line: “Our cooperation must not come at the expense of Canadian sovereignty or our economic interests,” he emphasized.

“Negotiation, Not Capitulation”—A Message of Resolve

In a message signaling resilience and independence, Carney underlined that while Canada remains open to dialogue, it will not succumb to economic threats or pressure tactics from Washington.

“Whatever strategy the United States chooses to adopt, Canada will not compromise on its economic interests or the protection of its workforce,” he stated.

Observers view Carney’s tone as indicative of a broader shift in Ottawa’s foreign policy—asserting national self-reliance in the face of Washington’s increasingly protectionist trade posture.

Strengthening Canada’s Economic Foundation

The Prime Minister also pointed to domestic efforts to strengthen Canada’s economy amid global uncertainties. “We’re building a stronger Canada. Our federal and provincial governments are working together to create a more resilient and competitive national economy,” he said. “From bolstering key international trade partnerships to launching new development projects, Canada is prepared to move forward with or without U.S. cooperation.”

The statement has been widely interpreted as a signal that Canada may pivot toward alternative trading blocs, such as the European Union, United Kingdom, and key Indo-Pacific partners, if tensions with the U.S. continue to escalate.

Trump’s Rationale: Trade Policy, Drug Crisis, and Deficits

President Trump’s announcement, delivered via a formal letter to Prime Minister Carney, cited three main reasons for the new tariff regime set to begin on August 1:

  • Unfair Canadian trade practices that, he claims, hurt American industries. 
  • The ongoing fentanyl crisis, with Trump blaming Canadian ports and lax enforcement for contributing to drug inflows.
  • A widening U.S. trade deficit, which he labeled as a "national threat."

Notably, Canada is now the 21st country to receive such tariff warnings under the Trump administration’s aggressive trade agenda. The original implementation date of July 9 was pushed to August 1 to allow for final negotiation windows.

Cooperation or Confrontation Ahead?

Trade analysts warn that this developing tariff conflict could severely strain U.S.-Canada diplomatic and economic ties. While Canada champions industrial unity and multilateral engagement, the U.S. continues to push unilateral tariff measures under a domestic-first policy.

With only a few weeks remaining until the August deadline, the trajectory of North American economic relations hangs in the balance. Whether diplomacy prevails or confrontation deepens remains to be seen.

The question now is not just whether tariffs will be implemented but whether two of the world’s closest allies can navigate one of their most serious trade rifts in decades.