President vows huge new levies on Canadian imports
President Trump on Thursday announced a sweeping 35% tariff on Canadian imports, escalating a trade dispute between the two allies. The tariff, effective August 1, comes as trade negotiations between Washington and Ottawa remain unresolved ahead of a July 21 deadline.
In a letter posted on Truth Social, the president said the measure was in response to what he called Ottawa’s “retaliatory” trade actions. “Instead of working with the United States, Canada retaliated with its own Tariffs,” he wrote, also linking the move to fentanyl flows into the US.
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” he said.
The letter is one of more than 20 sent by the White House this week to various trade partners, outlining potential tariff hikes if no agreements are reached by August. BBC reported that Trump has proposed blanket tariffs of up to 20% on other countries as well.
Canada responds
Canada’s prime minister Mark Carney swiftly addressed the development, stating on X, formerly Twitter, that “Canada has made vital progress to stop the scourge of fentanyl in North America.” He added, “We are committed to continuing to work with the United States to save lives and protect communities in both our countries.”
Carney emphasized that his government would continue defending Canadian businesses and workers, stating, “We will continue to do so as we work towards the revised deadline of August 1.”
Canada, the top buyer of US exports and the third-largest source of imports, exported $413 billion worth of goods exported to the US in 2024, a report from CNN noted. In turn, the US shipped $349 billion in goods to Canada that year.
Escalating tariffs
The new 35% duty is separate from existing levies, including 50% tariffs on steel and aluminium and 25% on autos. Trump also confirmed a 50% copper tariff beginning next month. Energy imports remain subject to a 10% rate.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,” Trump warned.
The latest figures from US Customs and Border Protection show just 0.2% of fentanyl seizures occurred at the northern border in 2024.
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