BREAKING: As Carney vacations, Trump announces 35% tariff over supply management, fentanyl

The Prime Minister responds, while on vacation

With Prime Minister Mark Carney on vacation, U.S. President Donald Trump has fired a blistering letter threatening to hammer Canadian exports with a brutal 35% tariff starting August 1.

In the strongly worded letter, Trump said that unless Canada cracks down on the flow of fentanyl and backs off its trade barriers, including supply management, the tariffs will go in effect.

In an explosive two-page letter sent from the White House on July 10, Trump accused Canada of financially retaliating against the U.S., failing to stop the influx of deadly opioids, and waging economic war through protectionist trade policies.

“Instead of working with the United States, Canada retaliated with its own Tariffs,” Trump wrote. “Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States.”

Industry-specific ‘carve outs’ for items like Canadian energy are not mentioned, nor are exemptions for CUSMA/USMCA-compliant goods.

Read the full letter from Trump at bottom.

The letter appears to leave little room for negotiation. Trump warned that any effort by Canada to increase its own tariffs would result in a matching hike from the U.S.

“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%,” he said.

The fentanyl crisis wasn’t his only target. Trump tore into Canada’s long-standing supply management system, slamming what he called “extraordinary Tariffs to our Dairy Farmers — up to 400%.”

He called the U.S.-Canada trade imbalance a “major threat to our Economy and, indeed, our National Security!”

The former president dangled a potential olive branch, saying that if Canada works with him to stop the fentanyl flow, “we will, perhaps, consider an adjustment to this letter.”

The diplomatic bombshell dropped just as Prime Minister Carney quietly retreated for a summer vacation somewhere in the National Capital Region, after attending the Calgary Stampede. His office refused to disclose the location, citing security reasons.

On June 16, Carney committed to a 30 day deadline for achieving a trade deal with the United States. Despite this tight timeline, Carney opted to head on vacation.

Tensions have been rising for weeks, but Trump’s direct personal intervention — and threat of broad-based tariffs — marks a dramatic escalation.

UPDATE: Late Thursday night, Prime Minister Carney responded publicly on X, while not committing to returning from his vacation.