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“I must mention the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States,” the letter said.

Trump pointed to supply management in the dairy sector, repeating his inaccurate claim about Canada putting 400 tariffs on American dairy farmers. The president said the trade deficit with Canada is a threat to the American economy and national security.

Canada and the United States had committed to working on a new economic and security agreement with a July 21 deadline for a deal. 

Trump slapped Canada with 25 per cent tariffs in March, with a lower 10 per cent levy on energy and potash. The president walked back duties on imports compliant under the Canada-U.S.-Mexico agreement on trade a few days later. 

It is unclear whether there’d be any carve out for imports compliant with the trilateral trade pact in Trump’s latest tariff threats. 

There are additional tariffs on steel, aluminum and automobiles, as well as a plan to introduce tariffs on copper, also on Aug. 1.

The letter also pointed out that Canada had responded with retaliatory tariffs against the United States after Trump first imposed the duties. Ottawa said its tariffs were targeted on things such as orange juice, motorcycles, clothing and shoes, coffee, cosmetics and alcohol.

“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35 (per cent) that we charge,” Trump’s letter said. 

Trump has sent correspondence to a handful of countries this week outlining higher tariffs they’ll face if they don’t make trade deals by the start of August. 

This report by The Canadian Press was first published July 11, 2025.