President Donald Trump has announced a 35% duty on Canadian goods starting August 1, escalating trade tensions just weeks before a self-imposed deadline to finalize a new bilateral agreement.
In a letter posted on Truth Social, Trump said the tariff would apply separately from existing levies on metals and autos and warned of broader import taxes on other nations, including the European Union. Similar notices were sent to over 20 trade partners in the past week.
Canada, which sends about 75% of its exports to the United States, faces mounting pressure across key industries, particularly auto manufacturing and metals. Prime Minister Mark Carney responded by reaffirming support for Canadian workers and businesses and said Ottawa remained committed to securing a deal.
“As you are aware, there will be no tariff if Canada, or companies within your country, decide to build or manufacture products within the United States,” Trump wrote, tying the new tariffs to manufacturing relocation, the cross-border fentanyl crisis, and dairy trade disputes.
He added, “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter.”
Carney pushed back on the drug-related claim, saying on X that Canada had taken meaningful steps to address fentanyl trafficking and would continue to work with Washington to protect North American communities. US Customs data shows just 0.2% of fentanyl seizures occur at the Canadian border.
The new tariff threat follows a series of U.S. trade actions: a global 50% duty on steel and aluminum, a 25% levy on all non-US vehicles, and a forthcoming 50% charge on copper imports. Whether the 35% tariff will apply to goods covered by the Canada-United States-Mexico Agreement remains unclear.
Trump warned of further increases if Canada retaliates. Ottawa has already enacted counter-tariffs and pledged additional measures if no agreement is reached by the July 21 deadline set at the G7 Summit.
In late June, Canada withdrew a digital services tax targeting US tech firms after Trump labeled it a “blatant attack.” Carney said its removal was part of a larger trade negotiation.
Related Readings:
- https://worldfinancialreview.com/trump-grants-temporary-auto-tariff-exemption-for-mexico-and-canada/
