Elizabeth May is urging the Canadian government to respond to U.S. President Donald Trump’s latest tariff threat.
On July 10, Trump said in a letter posted to Truth Social that the U.S. would impose a 35-per-cent tariff on all Canadian products sent to the U.S. starting on Aug. 1, separate from all sectoral tariffs. As justification, Trump referenced concerns about fentanyl he says flows into the U.S. from Canada, in addition to Canada’s “extraordinary” tariffs on U.S. dairy products. The two-page document adds that the size of any counter-tariffs would be tacked onto the U.S. levy.
“We have to do what's required now to protect our economy, and we have to make sure the U.S. knows that we're not going to cower in a corner and hope that someday they'll be nice to us if we give them all our lunch money,” the Saanich-Gulf Islands MP said at a press conference in Sidney on July 11.
May wants the federal government to "collect the Digital Services Tax ... in concert with global efforts within the OECD to deal with predatory tech giants.”
On June 29, Canada rescind the toll, which requires large foreign and domestic businesses to pay tax on some revenue earned from engaging with online users in Canada, amid ongoing trade talks with the U.S.
"To support those negotiations, the Minister of Finance and National Revenue, the Honourable Francois-Philippe Champagne, announced today that Canada would rescind the Digital Services Tax in anticipation of a mutually beneficial comprehensive trade arrangement with the United States," the Department of Finance said in a news release at the time.
May added that Canada should create a strategic reserve of potash – a group of minerals primarily used in fertilizers. She claims the move would target Trump’s key voters, including “supporters in the powerful corn and ethanol lobby.”
“We need to bite deep there so that [Trump] feels some pain and decides it would be a good idea to start actually reducing tariffs on Canada to get some relief from us,” she said.
May offered this action as alternatives to retaliatory tariffs.
"When you’re in a ring with a bully and the bully is 10 times your size, if your plan is every time they land a punch, we're going to land a punch back, you're not going to win in that ring. We need to be more strategic and go for the places that really will create some pain in places that Trump will notice like his Republican base,” she said.
Late on July 10, Carney responded to Trump's letter in an X post.
"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," reads the post.
"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."
