President Donald Trump said on Monday that his letters threatening new tariffs represent final deals, not opening positions for negotiation, as Prime Minister Mark Carney prepares to meet with his Cabinet today on trade strategy.Trump appeared to dismiss suggestions that further negotiations were needed with trading partners. Trump has sent letters to Canada, Mexico, and the European Union announcing tariff increases set to take effect on August 1."I watched a show this morning and they were talking about, 'Well when's he going to make the deal?' The deals are already made. The letters are the deals," said Trump during an Oval Office meeting with NATO Secretary General Mark Rutte. “The deals are made. There are no deals to make. They would like to do a different kind of a deal and we are always open to talking."Canada faces the highest tariff rate among major trading partners at 35%, while Mexico and the EU would each face 30% tariffs on their goods. .The White House later clarified that goods compliant with the Canada-US-Mexico Agreement (CUSMA) would be exempt from the Canadian tariffs.Christopher Sands, director of Johns Hopkins University's Center for Canadian Studies, questioned why Canada received a higher tariff despite being America's top trading partner and security ally."Carney went the extra mile for Trump until now but he may not have the public support in Canada to continue it for long," said Sands.The tariff threats represent a significant escalation in trade tensions. Trump and Carney have been negotiating what they called a new economic and security pact since meeting at the White House in May. Carney had initially set July 21 as a deadline for reaching an agreement, but Trump moved that to August 1 last week..Trump previously raised steel and aluminum tariffs from 25% to 50% in June, while Carney has refrained from retaliatory measures pending a potential trade deal.Canada implemented new procurement restrictions on Monday, limiting companies from countries that restrict Canadian access to their government contracts. Procurement Minister Joel Lightbound said the policy prioritizes Canadian companies and those from "reliable trading partners."Carney will meet with the Cabinet today for the first time since Trump's latest tariff announcement and is scheduled to meet with the premiers next week at a First Ministers meeting in Huntsville, ON.Trump's tariff justification centers on fentanyl trafficking and border security concerns. US Customs and Border Protection data shows approximately 26 kilograms of fentanyl has been seized at the Canadian border this fiscal year compared to 3,700 kilograms at the Mexican border.
