The US insists Canada will have to pay more tariffs in August if it doesn't open its market.

U.S. Commerce Secretary Howard Lutnick reminded Canada on Sunday that if it doesn't facilitate access to U.S. products in its market, it will face increased tariffs starting August 1, when the 35% tariff announced by President Donald Trump on Canada would go into effect.

"Canada is not open to us. They need to open their market. Unless they're willing to do that, they'll pay a tariff," Lutnick recalled in an interview with CBS.

The Commerce Secretary's remarks come nearly a week after Trump threatened Ottawa with tariff hikes he considers "reciprocal" in August, although the administration is reportedly considering not imposing tariffs on Canadian goods subject to the USMCA trilateral trade agreement, which also includes Mexico.

The Republican also imposed 50% tariffs on Canadian steel and aluminum, an increase the U.S. government considers "unjustified," and after which it announced it would consider retaliating.

Initially, Canadian Prime Minister Mark Carney's administration set a July 21 deadline to announce its response if no progress was made in the talks with its American counterparts, a deadline it later postponed to August shortly after receiving Trump's letter threatening a 35% tax.

Throughout the current trade negotiations with the U.S., the Canadian government has steadfastly stood up for our workers and businesses. We will continue to do so as we work toward the revised August 1 deadline," Carney wrote on his X account on July 11.

For his part, the Commerce Secretary reiterated this Sunday that by increasing tariffs on his partners, the president hopes to restore a trade balance that he considers unbalanced. "Why should we have our country so open while theirs is closed?" Lutnick asked.

"This is an 80-year-old mistake that President Trump is trying to correct, and our businesses will enjoy it immensely. I believe the president will open up $300 billion to $400 billion in opportunities for Americans. That represents GDP growth of up to 1.5%," he predicted.

Since returning to power six months ago today, Trump has intensified the tariff war against his trading partners, imposing global tariffs and then threatening new ones if no agreements are reached, in a pause that was originally scheduled to end on July 9 and then extended until August 1.

During this truce, the US only signed agreements with the United Kingdom, Vietnam, Indonesia, and China. Failing to reach any further agreements, the president sent letters notifying dozens of countries of tariffs ranging from 20% to 50%.

Talks with the European Union continue, although Trump insists that the 30% tax announced for Brussels has already been decided.