Canadian Prime Minister Mark Carney says Canada will keep working toward a new trade framework with the United States despite U.S.

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.

The Canadian government told employees they may face job losses, as Prime Minister Mark Carney searches for spending cuts to keep the budget deficit in check.

A day after President Trump announced a new 35 percent tariff on Canadian goods beginning next month, Prime Minister Mark Carney said Canada had made “vital progress” towards stopping fentanyl.

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.

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.