Trump Slaps 35% Tariffs on Canadian Imports Starting August 1, Warns of Further Hikes

Washington, D.C. – U.S. President Donald Trump on Thursday announced sweeping 35% tariffs on all Canadian imports, set to take effect August 1, escalating a trade standoff between the two close allies.

Citing Canada's retaliation and alleged role in the flow of fentanyl into the United States, Trump’s letter, posted on Truth Social, warned that the rate could increase further if Ottawa imposes any countermeasures.

“Instead of working with the United States, Canada retaliated with its own tariffs,” Trump wrote to Canadian Prime Minister Mark Carney, adding, “If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment.”

The tariffs will apply in addition to existing sectoral duties, including a 50% tariff on steel and aluminum, 25% on automobiles, and a newly announced 50% on copper, all effective August 1.

“If for any reason you decide to raise your tariffs, then whatever the number you choose will be added onto the 35% that we charge,” Trump wrote. He also warned against transshipping goods to evade duties, stating such shipments would be taxed accordingly.

Canada Responds Firmly

Prime Minister Carney responded on X (formerly Twitter), affirming Canada’s efforts against fentanyl trafficking:

“Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries.”

Carney also reaffirmed that Canada had “steadfastly defended our workers and businesses” in its ongoing negotiations with Washington.

Trade Tensions Deepen

The new tariffs come weeks after the U.S. and Canada agreed to resume trade talks by July 21, following Ottawa’s withdrawal of a controversial digital services tax on American firms.

Previously, Canada had imposed 25% tariffs on non-USMCA compliant U.S. vehicles and a range of goods, including aluminum, steel, electronics, and food, in response to Trump’s earlier tariffs. These countermeasures, Canada said, would remain until the U.S. reversed its metal duties.

Trump has also indicated intentions to raise blanket tariffs to 15–20% on most trading partners, up from the existing 10%, further straining global trade dynamics.

According to U.S. Census data, total U.S. goods trade with Canada reached $761.8 billion in 2024, with a $62 billion trade deficit in Washington’s books. From January to May 2025, that deficit rose 9.8% year-on-year, totaling $25.6 billion.

Trump characterized the trade imbalance as a “major threat to national security”, accusing Canada of deploying non-tariff barriers and harmful trade policies.

Whether this latest move derails upcoming negotiations or pushes both nations toward a new deal remains to be seen. But with the August 1 deadline looming, North America’s trade tensions are once again running hot.