U.S. President Donald Trump and Canada’s Prime Minister Mark Carney speak throughout a household photograph 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 a substitute of working with the US, Canada retaliated with its personal Tariffs,” Trump stated to Mark Carney, prime minister of Canada, in a letter posted on Fact Social.
He attributed fentanyl as a cause for that fee within the letter: “If Canada works with me to cease the movement of Fentanyl, we are going to, maybe, think about an adjustment to this letter.”
Responding to Trump’s announcement, Carney stated in a put up 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 shield communities in each our international locations.”
“The Canadian authorities has steadfastly defended our staff and companies. We are going to proceed to take action as we work in the direction of the revised deadline of August 1.”
The 35% tariffs might be separate from all sectoral tariffs, Trump stated, warning that the obligation is likely to be elevated, if Canada retaliated. Canada is 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.
Different imports from Canada into the U.S. at present entice a 25% levy that Trump imposed earlier this 12 months over the nation’s alleged position within the movement of fentanyl, with exemptions for these in compliance with the United States-Mexico-Canada Settlement. Vitality imports from Canada are topic to a decrease 10% levy.
“If for any cause you determine to lift your Tariffs, then, regardless of the quantity you select to lift them by, might be added onto the 35% that we cost,” Trump stated Thursday. “Good transshipped to evade this larger tariff might be topic to that larger tariff.”
Trump indicated that the tariff charges in future will rely upon 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 Limitations, which trigger unsustainable Commerce Deficits towards the US … The Commerce Deficit is a significant menace 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%.
Thursday’s letter got here after the 2 international locations agreed to resume the commerce talks on June 29 and to work on hammering out a deal by July 21, in accordance with an announcement from the Division of Finance Canada.
Trump had threatened to finish all commerce discussions with Canada, considered one of its largest buying and selling companions, over Ottawa’s “digital providers tax” on American companies. Canada withdrew that tax on June 29 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 autos from the U.S. and an inventory of American exports together with metal, aluminum, computer systems, apparels and meals earlier this 12 months. The countermeasures, Canada stated 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 12 months, in accordance with U.S. Census knowledge. Within the first 5 months this 12 months, the U.S. deficit in items commerce with Canada rose 9.8% 12 months on 12 months to $25.6 billion.
