- 35% tariff on Canadian imports to start August 1
- Trump threatens 15–20% tariffs on other U.S. partners
- Canada already facing 25% sector-specific tariffs
U.S. President Donald Trump has announced a new 35% tariff on Canadian goods, set to take effect on August 1. The move comes just days before a self-imposed deadline for the U.S. and Canada to finalize a new trade agreement.
The announcement was made via a letter published on Trump’s social media platform, Truth Social, which also included threats of sweeping tariffs—ranging from 15% to 20%—on most other U.S. trade partners.
Canadian Prime Minister Mark Carney responded by reaffirming his government’s commitment to protecting Canadian workers and businesses as negotiations continue.
Trump reportedly sent more than 20 similar letters to other U.S. trade partners this week. He also stated that new tariffs on the European Union are forthcoming, with implementation planned for August 1, as with Canada.
Some Canadian goods are already subject to a 25% tariff, and the country has previously been hit by Trump’s global tariffs on steel, aluminum, and automobiles. However, exemptions are currently in place for goods that comply with the North American free trade agreement.
It remains uncertain whether the new tariffs would apply to products covered under the Canada-United States-Mexico Agreement (CUSMA).
In addition to the Canadian measures, Trump has imposed a global 50% tariff on aluminum and steel, and a 25% tariff on all vehicles not manufactured in the U.S. A 50% tariff on copper imports is also scheduled to begin next month.
With Canada exporting about 75% of its goods to the U.S.—including cars, trucks, and metals—these tariffs could deal a significant blow to key sectors of the Canadian economy.
Trump claimed the 35% tariffs are separate from industry-specific levies, adding that no tariffs would apply if Canadian companies choose to manufacture within the U.S.
He also linked the new tariffs to what he described as Canada’s “failure” to curb the flow of fentanyl into the U.S., its dairy tariffs on American farmers, and the ongoing trade deficit between the two countries.
“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote. “These tariffs may be modified, upward or downward, depending on our relationship with your country.”
Trump has previously accused both Canada and Mexico of allowing fentanyl and large numbers of migrants into the U.S.
Responding on X, Prime Minister Carney said Canada had taken critical steps to combat the spread of fentanyl and remains committed to working with the U.S. to protect communities across North America.
According to U.S. Customs and Border Protection, only about 0.2% of fentanyl seizures occur at the Canadian border, with the vast majority intercepted at the U.S.-Mexico border.
Earlier this year, Canada pledged more funding for border enforcement and appointed a “fentanyl czar” in response to Trump’s concerns.
The two nations have been engaged in intense talks to establish a new trade and security framework. At the June G7 Summit, Trump and Carney agreed to reach a deal by July 21.
In his letter, Trump warned that further tariffs would be imposed if Canada retaliates. Canada has already enacted counter-tariffs and has pledged additional measures if no agreement is reached by the deadline.
In late June, Carney withdrew a digital services tax on major U.S. tech firms after Trump called it a “blatant attack” and threatened to halt trade discussions. Carney described the move as part of a broader negotiation strategy.
