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 in opposition to Washington.
“As a substitute 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 motive for that fee within the letter: “If Canada works with me to cease the circulation of Fentanyl, we’ll, maybe, contemplate an adjustment to this letter.”
A complete of 43 kilos of the drug was seized on the northern border throughout 2024 with an extra 58 kilos having been confiscated there to this point this 12 months, in line with the U.S. Customs and Border Safety.
Responding to Trump’s announcement, Carney mentioned in a publish on X that “Canada has made important progress to cease the scourge of fentanyl in North America. We’re dedicated to persevering with to work with the USA to avoid wasting lives and defend communities in each our nations.”
“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 can be separate from all sectoral tariffs, Trump mentioned, warning that the responsibility is perhaps 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. presently entice a 25% levy that Trump imposed earlier this 12 months over the nation’s alleged position within the circulation 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 motive you resolve to lift your Tariffs, then, regardless of the quantity you select to lift them by, can be added onto the 35% that we cost,” Trump mentioned Thursday. “Items transshipped to evade this increased tariff can be topic to that increased 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 in opposition to the USA … The Commerce Deficit is a significant risk to our Economic system and, certainly, our Nationwide Safety!”
Thursday’s letter got here after the 2 nations agreed to renew 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, over Ottawa’s “digital providers tax” on American corporations. Canada withdrew that tax so as to restart commerce talks with Washington.
In response to Trump’s duties, Ottawa had additionally imposed 25% tariffs on non-USMCA grievance autos from the U.S. and a listing of American exports together with metal, aluminum, computer systems, apparels and meals earlier this 12 months. The countermeasures, Canada mentioned in March, would keep “till the U.S. eliminates its tariffs in opposition to Canadian metal and aluminum merchandise.”
U.S. complete items commerce with Canada was $761.8 billion in 2024, with Washington’s deficit standing at $62 billion final 12 months, in line with U.S. Census information. 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.
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%.
