US President Donald Trump announced on Thursday that the United States will impose a 35% tariff on imports from Canada starting August 1, and is preparing to set broad tariffs of 15% to 20% on most other trading partners.
In a letter addressed to Canadian Prime Minister Mark Carney and shared on social media, Trump warned that the new rate could increase further if Canada responds with retaliatory measures.
The new tariff represents a jump from the current 25% and comes as a setback for Carney, who had been seeking a fresh trade agreement with Washington. Trump also criticized Canada for what he called tariff and non‑tariff barriers harming US dairy farmers and raised concerns about fentanyl entering the United States from Canada.
“If Canada works with me to stop the flow of fentanyl, we may consider adjusting this letter,” Trump wrote.
Prime Minister Carney, in a post on X, emphasized his government’s commitment to defending Canadian workers and businesses, adding that progress had been made in combatting the fentanyl crisis. Canadian officials have argued that only a tiny share of fentanyl originates from Canada but said they have strengthened border controls.
Exemptions from the new tariff are expected for goods covered under the United States‑Mexico‑Canada Agreement (USMCA). Tariffs of 10% on Canadian energy and fertilizer imports are also likely to remain unchanged, although Trump has not made a final decision.
Last month, Carney and Trump had agreed to try to conclude a new economic and security pact within 30 days. Trump’s letter did not detail the status of those talks but noted that tariffs could be “modified, upward or downward, depending on our relationship.”
Trump has recently expanded his trade measures to include new tariffs on other allies such as Japan and South Korea, and introduced a 50% tariff on copper. In an interview published Thursday, Trump suggested that not every country would get a separate notification, saying, “We’re just going to say all remaining countries will pay, whether it’s 20% or 15%.”
Canada remains the United States’ second‑largest trading partner after Mexico and is the biggest buyer of American exports, purchasing $349.4 billion in goods last year while exporting $412.7 billion to the US, according to official data.
The Canadian government also recently scrapped a proposed digital services tax on US tech companies after Trump suspended trade talks, calling the tax a “blatant attack.”
