Canada has made concessions to win goodwill with the White House. Trump, in return, has threatened steeper tariffs.

The letter reiterated Trump’s complaints about dairy quotas, fentanyl and the U.S. trade deficit, which is mostly fueled by American refineries’ thirst for Canadian oil. His social media post caused the Canadian dollar to immediately tumble, indicating the market wasn’t expecting this escalation.

US stocks fell Friday and the S&P 500 slipped from a record high after President Trump slapped Canada with a 35% tariff and threatened higher levies on most other nations. The S&P 500 plunged 0.4% to 6,253.10 after reaching a new record Thursday of 6,280.46.

A new oil pipeline to the British Columbia coast is highly likely to be included on a list of projects deemed to be of national importance to the Canadian government, Prime Minister Mark Carney told the Calgary Herald newspaper in an interview published on Sunday.

The Canadian government said “in anticipation” of a trade deal “Canada would rescind” the Digital Serves Tax. The plan to tax U.S. technology firms was set to go into effect Monday.

Carney has said that there will be no cuts to transfers to the provinces for things like health and social programs, nor would he cut individual benefits such as pensions and Old Age Security payments. Key programs rolled out by prime minister Justin Trudeau's government such as child care, pharmacare and dental care are also spared.

Pierre Poilievre is questioning Canada's approach to trade talks with the United States. He believes the deadline set by Prime Minister Mark Carney weakens Canada's position. Poilievre suggests the digital services tax could have been used as leverage.

U.S. President Donald Trump announced a 35% tariff on Canada and warned about further hikes if Ottawa decides to retaliate. These tariffs were addressed in a letter to Canadian Prime Minister Mark Carney and shared on Truth Social.