Canadian Prime Minister Mark Carney struck back at President Trump’s new 35% tariff threat, declaring Canada has made “vital progress” against fentanyl trafficking. Trump’s tariff, set for August 1, hikes earlier 25% duties, blaming Canada for allowing the opioid to “pour” into the US.
Carney pledged ongoing cooperation to “save lives” but stressed Canada would keep defending its workers and trade interests. The move disrupts talks aiming for a US-Canada deal by July 21, now extended to August 1.
Fentanyl facts contradict Trump’s border narrative
Data reveals a stark disconnect between Trump’s accusations and reality. U.S. Customs and Border Protection seized only 31 pounds of fentanyl at the Canada border this year, less than 0.1% of total U.S. seizures.
Over 99% of intercepted fentanyl enters through the Mexican border. Canada has invested $950 million in border security since January and appointed a “fentanyl czar” to coordinate cross-border efforts.
Public health experts confirm most Canadian fentanyl originates from Chinese labs and enters via U.S. West Coast ports, undermining Trump’s claims of Canadian negligence.
Trade deficits and dairy disputes fuel tariff decision
Behind the fentanyl rhetoric lie longstanding trade grievances. Trump’s letter specifically cited Canada’s $63 billion trade surplus with the U.S. and criticized Canada’s dairy tariff system protecting local farmers.
The timing coincides with Canada’s recent retreat on a proposed 3% digital services tax targeting U.S. tech giants, which Trump had called “a blatant attack.”
While the new tariffs exempt goods compliant with the USMCA trade agreement (covering 40% of Canada’s exports), they threaten to raise prices on lumber, machinery, and consumer goods. Carney vowed to “defend our workers” while expanding trade with the EU and UK.
Global trade chaos looms as deadlines approach
Trump issued over twenty similar tariff threats this week, including 50% duties on Brazil and blanket 15-20% rates for non-negotiating nations. Markets reacted cautiously, with the Canadian dollar dipping 0.3% against the U.S. dollar.
Carney’s team is accelerating talks with European Commission President Ursula von der Leyen while sharing strategy with new UK Prime Minister Keir Starmer.
As the August 1 tariff deadline nears, businesses brace for disruption. “The president always negotiates dramatically,” noted a former U.S. trade official, “but this risks collateral damage to American consumers.”