Trump Threatens 35% Tariff on Canada, Expands Trade Crackdown to EU

POTUS Donald Trump has threatened a 35% tariff on all Canadian exports to the U.S., effective August 1. The warning, delivered in a formal letter to Prime Minister Mark Carney and posted on Trump’s Truth Social, signals a major escalation in his trade offensive ahead of stalled USMCA talks.

The letter links any reversal of the tariff threat to Canadian cooperation on stopping fentanyl smuggling: “If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote.

Image Source: MagaVoice on X

Prime Minister Carney responded Thursday night, saying Canada remains committed to protecting its workers and is now working toward a “revised deadline” of August 1.

Trump also confirmed plans to impose blanket tariffs on additional trade partners, including the European Union. Rates will range from 15% to 25%, with official letters “going out today or tomorrow,” he told NBC’s Meet the Press.

“We’re just going to say all remaining countries will pay,” Trump said. “I’m talking European Union, and Canada.”

Market reaction was immediate. EU and U.S. stock futures dipped in early Asian trading as investors braced for retaliatory moves. The EU is already facing U.S. tariffs of up to 50% on steel and aluminum, 25% on cars, and 10% on most other goods.

The new deadline marks a shift from the previously expected July 21 target. Trump’s approach has turned trade talks into a pressure campaign. Mexico and Canada, both USMCA members, are scrambling to meet shifting demands. The EU has warned of countermeasures if negotiations fail.

April’s so-called “Liberation Day” tariffs, imposed under Trump’s reciprocal trade doctrine, were temporarily paused to allow for talks. With the clock now reset to August 1, that pause appears to be ending.

What started as a renegotiation of trade terms is now a test of economic leverage. For allies like Canada and the EU, Trump’s message is clear: bend—or pay.