U.S. President Announces New Tariffs on Canadian Imports

EPA

The letter to Canada is among more than 20 that Trump had posted this week to US trade partners.

U.S. President Donald Trump has announced that a 35% tariff will be imposed on Canadian imports starting next month, with blanket tariffs of 15% to 20% planned for most other trading partners.

In a letter released via his social media platform, President Trump informed Canadian Prime Minister Mark Carney that the new tariff would take effect on 1 August and warned that rates could rise further if Canada were to retaliate.

Responding on X (formerly Twitter) late Thursday, Prime Minister Carney stated that his government would continue to defend Canadian workers and businesses in ongoing negotiations with the United States ahead of the looming deadline.

The 35% tariff represents a significant increase from the current 25% rate already applied to Canadian imports and is a setback for Prime Minister Carney, who has been seeking to finalise a trade agreement with Washington.

Goods covered under the United States–Mexico–Canada Agreement (USMCA) are expected to remain exempt, and the current 10% tariffs on energy and fertilisers are also unlikely to change, although a final decision has not yet been made, according to a senior U.S. administration official.

In his letter, President Trump criticised what he described as the flow of fentanyl into the U.S. from Canada, along with Canadian tariff and non-tariff barriers that he claims have harmed American dairy farmers and other sectors. He framed the trade deficit as a threat to both the U.S. economy and national security.

“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” the President wrote.

Canadian officials have pointed out that only a negligible quantity of fentanyl originates in Canada, but stressed that measures have been taken to strengthen border controls.

“Canada has made vital progress in tackling the scourge of fentanyl in North America. We remain committed to working with the United States to save lives and protect communities in both our countries,” Carney posted on X late Tuesday.

Last month, Prime Minister Carney stated that he and President Trump had agreed to conclude a new economic and security agreement within 30 days.

President Trump has recently escalated his broader trade campaign, imposing new tariffs on several countries, including traditional allies Japan and South Korea, and introducing a 50% tariff on copper.

Canada is the second-largest trading partner of the United States after Mexico and remains its largest export market. In 2024, Canada imported $349.4 billion in U.S. goods and exported $412.7 billion to the U.S., according to U.S. Census Bureau data.

Prime Minister Carney, who led his Liberal Party to a comeback victory earlier this year on a platform that prioritised trade reform with the United States, had aimed to secure a deal with Washington by 21 July.

While President Trump’s letter did not specifically comment on the status of negotiations, he stated that tariffs “may be modified, upward or downward, depending on our relationship with your country.”

Last month, the Carney government cancelled a proposed digital services tax aimed at U.S. technology companies after Trump abruptly halted trade talks, calling the measure a “blatant attack.”



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