U.S. President Donald Trump and Canada’s Prime Minister Mark Carney speak 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 USA, 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 cause for that price within the letter: “If Canada works with me to cease the stream of Fentanyl, we are going to, maybe, think about an adjustment to this letter.”
Responding to Trump’s announcement, Carney mentioned 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 USA to save lots of lives and shield communities in each our international locations.”
“The Canadian authorities has steadfastly defended our staff and companies. We’ll proceed to take action as we work in direction of the revised deadline of August 1.”
The 35% tariffs shall be separate from all sectoral tariffs, Trump mentioned, warning that the obligation is perhaps 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 cause you determine to lift your Tariffs, then, regardless of the quantity you select to lift them by, shall be added onto the 35% that we cost,” Trump mentioned Thursday. “Good transshipped to evade this larger tariff shall be topic to that larger 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 Boundaries, which trigger unsustainable Commerce Deficits towards the USA … 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. at present appeal to a 25% levy that Trump imposed earlier this yr over the nation’s alleged function within the stream of fentanyl, with exemptions for these in compliance with the United States-Mexico-Canada Settlement. Vitality sources from Canada are topic to a decrease 10% levy.
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 line with an announcement from the Division of Finance Canada.
Trump had threatened to finish all commerce discussions with Canada, one among its largest buying and selling companions, after Ottawa mentioned it could not pause the imposition of a “digital companies tax” on American companies. Canada later withdrew that tax in an effort 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 a listing 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 knowledge. 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.
