Trump imposes 35% tariff on Canadian imports starting August 1

US President Donald Trump on Thursday announced a 35% tariff on Canadian imports. The new tariff, set to take effect on August 1, 2025, will apply to Canadian products entering the United States and comes as part of what Trump called a response to “Canada’s retaliation” and ongoing trade barriers.

In an official letter posted on Truth Social, Trump outlined his reasons for the steep tariff hike and accused Canada of failing to cooperate on key issues, particularly the flow of fentanyl into the US and what he described as unfair trade practices.

FENTANYL AND TRADE DEFICIT

In his letter, Trump emphasised that the US would continue its trading relationship with Canada, but on revised terms. “Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs,” he wrote.

The president claimed that Canada’s failure to stop fentanyl from entering the US contributed to the new tariff policy. “As you will recall, the United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our Country,” the letter said.

He also warned against attempts to bypass the tariff through transshipment, adding that “goods transshipped to evade this higher Tariff will be subject to that higher Tariff.”

TRUMP WARNS OF RETALIATION IF CANADA RESPONDS

In a direct warning to Ottawa, Trump said any Canadian response would be met with additional tariffs. “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,” he wrote.

Trump also attacked Canada’s long-standing tariffs on US dairy exports, calling them “extraordinary” and blaming them for contributing to America’s trade deficit. “Canada charges extraordinary Tariffs to our Dairy Farmers — up to 400% — and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada,” he said.

He framed the trade imbalance not just as an economic issue, but a national security concern: “The Trade Deficit is a major threat to our Economy and, indeed, our National Security!”

The letter added that if Canadian companies choose to move their operations to the US, the administration will assist them with quick regulatory approvals: “We will do everything possible to get approvals quickly, professionally, and routinely — in other words, in a matter of weeks.”

TRUMP EYES BLANKET TARIFFS ON MORE COUNTRIES

While, the US President also said that he plans to impose blanket tariffs of 15% or 20% on most trade partners, adding that the European Union and Canada may receive tariff letters by Friday.

In an interview with NBC News on Thursday, Trump said other trading partners that had not yet received such letters would likely face blanket tariffs.

“Not everybody has to get a letter. You know that. We’re just setting our tariffs,” Trump told NBC News.

“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump said as quoted by the network.

“I think the tariffs have been very well-received. The stock market hit a new high today,” the president added.

Trump has released letters to 22 countries outlining new tariff rates, including a 50% tariff on imports from Brazil. He also announced a 50% tariff on copper imports, set to take effect from August 1.

– Ends