Trump’s Fentanyl Tariff: Canada Pushes Back, Trade Deal Deadline Looms
US President Donald Trump’s decision to impose a 35% tariff on Canadian goods, citing concerns over fentanyl trafficking, has sparked a tense exchange between the two North American neighbours. The move, announced on July 11, 2025, immediately escalated trade tensions.
Canadian Prime Minister Mark Carney responded swiftly, asserting that Canada is actively combating the fentanyl crisis and remains dedicated to collaborating with the US. He reiterated Canada’s commitment to finding a resolution.
The tariff announcement casts a long shadow over ongoing negotiations for a bilateral trade agreement, with both sides aiming for a final deal by August 1, 2025. The deadline now appears increasingly challenging to meet.
This escalating trade dispute carries significant implications for the North American economy, impacting businesses and consumers on both sides of the border. The success or failure of the August 1 deadline will significantly shape the future of US-Canada trade relations.