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In a letter to Carney on Thursday, Trump threatened to impose 35 per cent tariffs on Canadian goods by that date — evidently setting a new deadline for the trade talks that were supposed to wrap up by July 21.

Asked about the tariff threat while leaving the White House Friday morning, Trump told reporters that “it was sent yesterday. They called. I think it was fairly well received.”

A spokeswoman for the Prime Minister’s Office said Carney and Trump did not speak Thursday night.

She said officials from both countries meet daily as trade talks continue, but Thursday’s meeting took place before Trump sent his tariff letter.

Trump wrote that if Canada works to stop the flow of fentanyl into the United States, he may consider a tariff adjustment.

Fentanyl seizures are up slightly this year at the shared border. U.S. Customs and Border Protection has seized about 26 kilograms of the drug at the Canada-U.S. border to date this fiscal year, up from 19.5 kilograms last fiscal year.

That still pales in comparison to fentanyl seizures at the United States’ southern border, where U.S. border agents have seized nearly 3,700 kilograms so far this fiscal year.

The president also took aim at Canada’s dairy sector and supply management, saying American dairy farmers are charged “up to 400%” in tariffs if they “even have access to sell their products” in Canada.

In the French leaders’ debate during the spring election campaign, Carney said that supply management will “never be on the table” in trade talks with the U.S.

Trump also claimed the United States’ trade deficit with Canada is a threat to its “Economy and, indeed, (its) National Security.”

The trade deficit between the two countries is primarily driven by American imports of Canadian oil at below market value.

A White House official said the 35 per cent tariff rate is only expected to be applied to goods already hit with a 25 per cent import tax. This would exempt goods compliant with the Canada-U.S.-Mexico Agreement on trade, plus energy and potash imports that face a 10 per cent tariff rate.

The official also said no final policy paper has been drafted and Trump has not yet made a final decision.

Candace Laing, CEO of the Canadian Chamber of Commerce, said that these tariffs would mean higher prices for Americans and continue to damage the “most productive trade relationship two countries have ever had.”

“Rather than public threats and ultimatums, the Canadian Chamber hopes to see both governments continue their ongoing talks in good faith and behind closed doors, with the aim of reaching a real and reliable economic and security relationship in the near term. Only this will benefit businesses and workers in both countries,” Laing said in a media statement.

Lana Payne, national president of Unifor, said on social media there’s only one word to describe Trump’s tactics — “extortion.”

“Canada must use every bit of leverage we have. Workers are counting on our government to defend their jobs. Concessions won’t stop a bully, but collective strength will,” she said.

Conservative Leader Pierre Poilievre called the latest tariff threat an “unjustified attack on Canada’s economy.”

“Conservatives stand ready to do everything we can to secure the best deal for Canada by the July 21 deadline the Prime Minister has set,” Poilievre said in a social media post.

Bloc Québécois Leader Yves-François Blanchet said on social media that his party supports increasing trade ties with the European Union. He also accused Carney of “failing” by focusing on investments in the oil and gas sector, which he said would only affect trade “well after Donald Trump’s departure.”

Blanchet added this would be “extremely costly” for the environment and “family finances.”

Canada also faces additional U.S. tariffs on steel, aluminum and automobiles, as well as a U.S. plan to introduce tariffs on copper on Aug. 1.

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