TACO Trump has unleashed another wild tariff swing, threatening huge new penalties for Canada in an unhinged letter peppered with random capital letters and catty insults.
The message to Canadian Prime Minister Mark Carney was part of the administration’s fresh blitz to secure trade deals after postponing the original July 9 deadline to reinstate tariffs that were first announced in April.
The on-again, off-again tariff threats have earned Trump an infamous nickname among Wall Street brokers: TACO, or Trump Always Chickens Out.
“It is a Great Honor for me to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship,” Trump began, foreshadowing a string of bizarre capitalization choices that would appear throughout the letter.
He went on to threaten a 35 percent tariff on Canadian goods beginning Aug. 1 unless Canada decides to build or manufacture its products in the U.S.
“The United States of America has agreed to continue working with Canada, despite Canada having financially retaliated against the United States,” the letter continues, referencing the 25 percent tariff on American goods that Canada imposed in March.
Shortly after he returned to office, Trump announced that he would slap a 25 percent tariff on Canada and Mexico for supposedly contributing to the fentanyl crisis in the U.S., but quickly put the plan on ice after the stock market got spooked.
In April, he unveiled a slew of tariffs on dozens of U.S. trading partners but paused their rollout until July 9 after his “Liberation Day” announcement sent the markets crashing.
“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,” Trump said in the Thursday letter. “Instead of working with the United States, Canada retaliated with its own Tariffs.”
Treasury Secretary Scott Bessent said over the weekend that Trump would be sending out letters to several countries warning them that the tariffs will be reinstated on Aug. 1 unless they close a trade deal soon.
This time around, Trump warned Canada that “goods transshipped to evade this higher Tariff will be subject to that higher Tariff” and that, “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.”
Trump also accused Canada of causing “unsustainable Trade Deficits against the United States,” which he branded a “major threat” to the U.S. economy.
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” he said. “These Tariffs may be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America.”
The president’s chaotic tariff rollout had provoked mockery but Trump has insisted that it’s all just part of his negotiating strategy.
“Don’t ever say what you said,” he told the reporter who brought up the nickname in May. “I usually have the opposite problem. They say I am too tough.”
In an X post, Carney committed to working with the Trump administration to meet the new deadline.
“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses,” he said. “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,” he added.
