Overview

• President Trump has informed Prime Minister Carney that a 35% duty will target Canadian goods not compliant with the Canada-United States-Mexico Agreement starting August 1.
• Separate letters to Mexico and the European Union impose a 30% tariff rate on non-CUSMA imports without public rationale for the discrepancy.
• Trump has characterized his tariff threat letters as final deals and declined to negotiate new terms beyond those outlined in his correspondence.
• Ottawa has introduced an interim reciprocal procurement policy to prioritize Canadian firms and those from reliable trading partners.
• Carney is convening his cabinet Tuesday to coordinate negotiations on an economic-security pact whose deadline was unilaterally extended from July 21 to August 1.