U.S. President Donald Trump and Canada’s Prime Minister Mark Carney discuss throughout a household picture on the G7 Summit in Kananaskis, Alberta, Canada, June 16, 2025.
Amber Bracken | Reuters
U.S. President Donald Trump on Thursday raised tariffs on Canadian imports to 35%, efficient Aug. 1, complaining that Ottawa had retaliated with duties towards Washington.
“As an alternative of working with the US, Canada retaliated with its personal Tariffs,” Trump mentioned to Mark Carney, prime minister of Canada, in a letter posted on Reality Social.
He attributed fentanyl as a purpose for that price within the letter: “If Canada works with me to cease the move of Fentanyl, we are going to, maybe, contemplate an adjustment to this letter.”
Responding to Trump’s announcement, Carney mentioned in a submit on X that “Canada has made very important progress to cease the scourge of fentanyl in North America. We’re dedicated to persevering with to work with the US to avoid wasting lives and defend communities in each our nations.”
“The Canadian authorities has steadfastly defended our staff and companies. We are going to proceed to take action as we work in direction of the revised deadline of August 1.”
The 35% tariffs might be separate from all sectoral tariffs, Trump mentioned, warning that the obligation is likely to be elevated, if Canada continues to retaliate. Canada is already topic to Trump’s 50% tariffs on metal and aluminum imports, 25% tariffs on autos, and faces a 50% levy on copper shipments beginning Aug. 1.
“If for any purpose you resolve to boost your Tariffs, then, regardless of the quantity you select to boost them by, might be added onto the 35% that we cost,” Trump mentioned Thursday. “Good transshipped to evade this increased tariff might be topic to that increased tariff.”
Trump indicated that the tariff charges in future will rely on how Washington’s relationship with Ottawa pans out, whereas mentioning that his nation confronted challenges from Canada that went past fentanyl.
“[Canada] has many Tariff, and Non-Tariff, Insurance policies and Commerce Obstacles, which trigger unsustainable Commerce Deficits towards the US … The Commerce Deficit is a serious risk to our Economic system and, certainly, our Nationwide Safety!”
Individually, Trump advised NBC information Thursday that he intends to impose blanket tariffs of 15% or 20% on most commerce companions, up from the present 10%.
Imports from Canada into the U.S. presently entice a 25% levy that Trump imposed earlier this yr over the nation’s alleged position within the move of fentanyl, with exemptions for these in compliance with the United States-Mexico-Canada Settlement. Power assets from Canada are topic to a decrease 10% levy.
Thursday’s letter got here after the 2 nations agreed to resume the commerce talks on June 29 and to work on hammering out a deal by July 21, in line with a press release from the Division of Finance Canada.
Trump had threatened to finish all commerce discussions with Canada, one in all its largest buying and selling companions, after Ottawa mentioned it might not pause the imposition of a “digital providers tax” on American corporations. Canada later withdrew that tax with a purpose to restart commerce talks with Washington.
In response to Trump’s duties, Ottawa had additionally imposed 25% tariffs on non-USMCA criticism automobiles from the U.S. and an inventory of American exports together with metal, aluminum, computer systems, apparels and meals earlier this yr. The countermeasures, Canada mentioned in March, would keep “till the U.S. eliminates its tariffs towards Canadian metal and aluminum merchandise.”
U.S. whole items commerce with Canada was $761.8 billion in 2024, with Washington’s deficit standing at $62 billion final yr, in line with U.S. Census information. Within the first 5 months this yr, the U.S. deficit in items commerce with Canada rose 9.8% yr on yr to $25.6 billion.
