Trump Announces 35% Tariff on Canadian Imports Starting August 1
U.S. President Donald Trump has announced a 35% tariff on Canadian imports, effective August 1, citing Canada’s retaliatory tariffs and its alleged role in the U.S. fentanyl crisis.
In a letter to Canadian Prime Minister Mark Carney, Trump accused Canada of refusing to cooperate on stopping fentanyl and warned that tariffs could rise further if Canada responds with more duties. He added that any retaliatory tariff increase by Canada would be matched on top of the 35%.
The new tariffs are separate from existing sectoral tariffs, such as the 50% rate on steel and aluminum and 25% on most cars and parts. Canada had previously retaliated with its own tariffs on U.S. goods.
While Canada recently dropped a planned digital services tax to resume trade talks, Trump warned that the 35% tariff may still be raised or reduced depending on future cooperation.
Canada is the U.S.’s top export market and third-largest import source, meaning the economic impact of escalating tariffs could be significant on both sides.
Trump reiterated his long-standing criticism of Canadian trade policies, claiming they contribute to a major U.S. trade deficit and pose a threat to national security.