Trump says ‘the friends have been worse than the foes’ after announcing new tariffs on Canada

U.S. President Donald Trump promised to strike Canada with a 35 per cent blanket import tariff on Aug. 1 in a letter to the prime minister published on Truth Social.

It’s an escalation to the two nations’ enduring, months-long trade war. Both countries, which share deeply connected supply chains, have levied tariffs on billions of dollars in goods against each other.

Here’s how Friday unfolded.

2:07 p.m. EDT: Joly: ‘Economic diplomacy is more important than ever’

Industry Minister Mélanie Joly says “economic diplomacy is more important than ever” in the wake of U.S. President Donald Trump’s ongoing tariff threats.

Joly made the remarks in a joint media availability in Ottawa with European Commissioner Executive Vice-President for Prosperity and Industrial Stéphane Séjourné, aimed at highlighting the new partnership between Canada and the European Union to strengthen trade and economic security ties.

“We’re not in normal times and economic diplomacy is more important than than ever, and that’s why we need to make sure that while the U.S. is closing its market and really taking its own path regarding protectionism, that we as a stable and democratic country continue to have open markets, including with the E.U.,” Joly said to reporters.

When asked directly about what new measures the federal government is willing to take moving forward to counter the U.S., Joly said, “We won’t negotiate in public, and we’ll let the Prime Minister negotiate.”

 “Fundamentally, while these negotiations are happening, we need to realign ourselves with trusted partners, and today what you’re seeing is a realignment between trusted partners,” she added.

Stephanie Ha, Supervising Producer, Ottawa News Bureau

1 p.m. EDT: Changing tariff timelines are ‘toxic’

While a new tariff deadline may provide more room for Canada to get a deal with the U.S., the moving timelines are creating other problems, the Canadian Chamber of Commerce (CCC) says.

“What this letter to Canada does in effect is further lengthen the time for negotiations,” said CCC Chief of Public Policy Matthew Holmes. But “the uncertainty for business, the constant changing of the goal posts, and the deadlines, and the numbers, continues – and that’s quite toxic for business.”

Trump’s letter to Prime Minister Mark Carney has the 35% tariffs on Canadian imports coming into effect August 1, rather than the July 21 deadline set last month at the G7 Leaders’ Summit in Alberta.

Holmes says the letter is also part of Trump’s negotiation strategy.

“There’s a bully pulpit happening here for sure, and I think we are all getting too familiar with the approach and the tone and style of the president”

Scott Ferguson, centralized writing service news director

12 p.m. EDT: ‘Hit back hard,’ union urges

Canada must “hit back hard” against the U.S. or risk losing domestic jobs, says Canada’s largest private sector union, Unifor.

“Trump’s playbook is clear, implement and threaten sky-high tariffs to condition us into accepting a lower baseline tariff as the new normal. We must never fall for it,” said Unifor National President Lana Payne.

“That’s not negotiation—that’s coercion. We will not settle for a future where Canadian jobs are held hostage to the U.S.”

In his letter to Prime Minister Mark Carney, Trump said companies could avoid tariffs if they manufacture their products in the U.S. He also vowed to “get approvals” for those companies in a matter of weeks.

Unifor also wants Ottawa to stockpile aluminum, critical minerals and other items as part of a national reserve strategy.

Luca Caruso-Moro, CTVNews.ca journalist

11:25 a.m. EDT: Carney calls in cabinet after Trump’s threats

Prime Minister Carney will convene his cabinet to talk trade next week.

The roundtable will take place on Tuesday with U.S. negotiations as its centrepiece, according to the Prime Minister’s Office. It precedes Carney’s meeting with premiers the following week.

In a post on social media Friday, Ford announced Carney will meet with provincial and territorial leaders on July 22 in Huntsville, Ont. ahead of the Council of the Federation meeting with Canada’s premiers, of which Ford is chair.

“Together, we’re going to remain united as we protect Ontario and protect Canada,” he said.

Luca Caruso-Moro, CTVNews.ca journalist, Phil Tsekouras, CTVNewsToronto.ca journalist

11:20 a.m. EDT: Tariff threat ‘not grounded in economic logic’

The head of Toronto’s trade board says U.S. President Donald Trump’s latest tariff threat is “not grounded in economic logic” as he pushed Ottawa to continue to negotiate the “best deal it can” for Canadians.

“Our members are deeply frustrated by yet another disruptive turn in U.S. trade policy,” Toronto Region Board of Trade president and CEO Giles Gherson said in a statement issued Friday, calling the latest development in Trump’s ongoing trade war with Canada a “bargaining tactic.”

“It also comes at a time when Canadian businesses are already navigating the competitive pressures created by the United States’ new industrial strategy, the so-called ‘One Big Beautiful Bill,’” he said.

Phil Tsekouras, CTVNewsToronto.ca journalist

10:55 a.m. EDT: Canadian border ‘not an important part’ of fentanyl fight: U.S. think tank

According to a July report from U.S. think tank the Manhattan Institute, barely any of the fentanyl seized in the United States originates from Canada.

Trump has cited fentanyl as a reason for imposing tariffs on Canada.

“These data call into question tariffs and other policies and policy justifications that treat the threat from the northern border as comparably severe (to the U.S.-Mexico border),” the report reads.

By weight, about 99 per cent of fentanyl pills, capsules or tablets and 97 per cent of powder, resin or tar gathered in large, land-boundary seizures between 2013 and 2024 were discovered in U.S.-Mexico border counties, according to the report.

And U.S. Customs and Border Protection (CBP) data show that of the 4,376 total fentanyl seizures counted by CBP between October 2021 and February 2025, just 241 occurred at Canada-U.S. boundaries, and only 162 of those were along the land border between the two countries.

“Counties along the Canadian border are not an important part of this story,” the report concludes.

“Whatever the merits or drawbacks of tariffs on imports from Canada … such actions cannot be justified as part of a pragmatic and data-informed response to the threat of fentanyl to the United States.”

Charlie Buckley, CTVNews.ca journalist

10:20 a.m. EDT: Trump: ‘We’ve been taken advantage of’

Asked for his advice to countries ahead of tariff deadlines, Trump told reporters those nations should “just keep working hard,” and that “it’s all going to work out.”

Trump was asked shortly before taking off for a trip to central Texas to survey damage from recent floods.

“We’ve been taken advantage of for many, many years by countries, both friend and foe,” he said Friday. “Frankly, the friends have been worse than the foes, in many cases.”

Charlie Buckley, CTVNews.ca journalist

9:35 a.m. EDT: CUSMA-compliant goods likely won’t be hit: official

A White House official speaking to CTV News says Trump’s new 35 per cent tariff threat likely won’t impact Canadian imports that are compliant under the Canada-U.S.-Mexico Agreement (CUSMA).

It means goods already tariffed at 25 per cent and not protected under CUSMA could be tariffed by 35 per cent on Aug. 1. Tariffs on some energy-related products and potash are expected to remain at 10 per cent.

But the official also tells CTV News that Trump has made “no final decisions” and “no final paper has been drafted.”

Stephanie Ha, CTV News journalist

9 a.m. EDT: Canada needs to ‘work around the clock’: Ford

Ontario’s premier called on the federal government to act with urgency to strike a deal with U.S. in the face of new looming tariffs.

“Now more than ever, we need the federal government to work around the clock to secure a deal that is right for Canada and eliminates all American tariffs,” Ontario Premier Doug Ford’s office said in a statement.

Bryann Aguilar, CP24.com journalist

Read Trump’s letter

Trump posted the following letter, addressed to Prime Minister Mark Carney, on Truth Social Thursday evening.

“Dear Mr. Prime Minister:

“It is a Great Honor for me to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship, and the fact that the United States of America has agreed to continue working with Canada, despite Canada having financially retaliated against the United States. As you will recall, the United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our Country. Instead of working with the United States, Canada retaliated with its own Tariffs. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs. Goods transshipped to evade this higher Tariff will be subject to that higher Tariff. As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely – In other words, in a matter of weeks.

“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% that we charge.

“Also, I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States. Canada charges extraordinary Tariffs to our Dairy Farmers – up to 400% – and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada. The Trade Deficit is a major threat to our Economy and, indeed, our National Security!

“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider and adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with you Country. You will never be disappointed with The United States of America.

“Thank you for your attention to this matter!

“With best wishes, I am,

“Sincerely,

“DONALD J. TRUMP

“PRESIDENT OF THE UNITED STATES OF AMERICA”

Carney responds

In response to Trump’s letter, Carney published the following post on X.

“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1.

“Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries.

“We are building Canada strong. The federal government, provinces and territories are making significant progress in building one Canadian economy. We are poised to build a series of major new projects in the national interest. We are strengthening our trading partnerships throughout the world.”

The “revised deadline” is in reference to a shift from July 21, the date by which the two leaders agreed to ink a trade deal.

Edited by CTVNews.ca’s Luca Caruso-Moro