U.S. President Donald Trump announced on Thursday a significant 35% tariff on Canadian imports that is set to take effect on August 1. This move follows Canada’s response to previous tariffs imposed by the United States.
In a letter addressed to Canadian Prime Minister Mark Carney, Trump expressed his dissatisfaction with Canada’s decision to retaliate with its own tariffs. “Instead of working with the United States, Canada retaliated with its own tariffs,” he wrote, sharing the content on Truth Social.
The president also pointed to the issue of fentanyl trafficking as a contributing factor to the tariff decision, stating, “If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter.”
The newly announced tariffs are distinct from other sectoral tariffs that may be in place. Trump has indicated that the duty could be increased if Canada continues to respond negatively. “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,” he warned.
He further stated in the letter that products transshipped to circumvent the higher tariffs would indeed face those increased rates.
Currently, Canadian imports are subjected to a 25% tariff imposed by Trump earlier this year, which was based on the country’s alleged involvement in fentanyl distribution, although some exemptions exist for compliance with the United States-Mexico-Canada Agreement. Additionally, energy resources from Canada have a lower tariff rate of 10%.
This announcement follows a recent agreement between the two nations to resume trade negotiations on June 29, with a goal of finalizing a deal by July 21, as noted by a statement from the Department of Finance Canada.
Trump had previously threatened to terminate all trade discussions with Canada, a key trading partner, after Ottawa announced it would not delay implementing a digital services tax on American businesses. Subsequently, Canada decided to rescind the planned digital services tax to facilitate the resumption of trade talks with Washington.
This is breaking news. Please refresh for updates.
