Trump Imposes 35% Tariff on Canadian Goods, Threatens Harsher Measures Over Trade Tensions
U.S. President Donald Trump has announced a sweeping 35% tariff on all Canadian imports, set to take effect August 1, 2025. The move marks a sharp escalation in trade tensions between Washington and Ottawa, with Trump warning that further retaliation by Canada could trigger even higher levies.
In a letter shared on Truth Social, Trump directly addressed Canadian Prime Minister Mark Carney, accusing Canada of retaliatory trade measures instead of cooperating with the United States. He also cited fentanyl-related concerns as justification for the new tariffs.
“Instead of working with the United States, Canada retaliated with its own Tariffs,” Trump wrote. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter.”
Tariff Details and Escalation Threat
The newly announced 35% tariff will be in addition to existing sector-specific duties. Trump also made it clear that any increase in Canadian tariffs would be matched—and added—to the U.S. rate.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,” Trump warned.
He added that goods transshipped through third countries in an attempt to evade tariffs would be subject to the higher rate.
Beyond Fentanyl: Trade Deficit and Digital Tax
Trump went on to accuse Canada of implementing numerous tariff and non-tariff barriers that contribute to what he described as an “unsustainable trade deficit” with the United States.
“The Trade Deficit is a major threat to our Economy and, indeed, our National Security!” he stated.
The decision comes just weeks after a diplomatic breakthrough: On June 29, both nations had agreed to resume trade talks with a goal of reaching a new deal by July 21. This came after Canada agreed to suspend its digital services tax on U.S. tech companies—a key sticking point for Washington.
Earlier this year, Trump imposed a 25% tariff on Canadian imports linked to Canada’s alleged role in fentanyl trafficking. However, energy products from Canada were only taxed at 10%. The new 35% tariff will apply broadly across most categories, regardless of existing exemptions under the United States-Mexico-Canada Agreement (USMCA).
Outlook: Rising Trade Tensions Ahead
Thursday’s announcement signals a potentially serious trade war between two of North America’s largest partners, with key industries on both sides bracing for impact. The outcome of resumed negotiations will be pivotal, as Trump has hinted at either scaling back or increasing tariffs based on Canada’s actions in the coming weeks.
As of now, Ottawa has not formally responded to the new tariff announcement.
Source: https://www.cnbc.com/2025/07/11/trump-announces-35percent-tariffs-on-canada-starting-aug-1.html
