Trump imposes 35% tariff on Canada, considers 15–20% duties on other countries

In a letter posted on his social media platform, US President Donald Trump informed Canadian Prime Minister Mark Carney that a new 35% tariff on Canadian imports would take effect on August 1 — up from the current 25% — and warned that the rate could rise further if Canada retaliated.

The move deals a blow to Carney, who has been pushing for a new trade agreement with Washington. While products covered under the United States-Mexico-Canada Agreement (USMCA) are expected to remain exempt, 10% tariffs on energy and fertilizer are also likely to stay unchanged, though no final decision has been made, according to a senior US official.

In the letter, Trump criticized Canada over alleged fentanyl trafficking, as well as tariff and non-tariff barriers that he claimed harm US dairy farmers and other industries. He argued that the trade imbalance posed a threat to the American economy and national security.

Canadian officials responded by saying only a negligible amount of fentanyl enters the US from Canada, and that steps have already been taken to tighten border controls.

“If Canada cooperates with me to stop fentanyl trafficking, we may revisit the terms of this letter,” Trump wrote. Carney’s office has yet to comment. Last month, the prime minister had said he and Trump were working toward finalizing a new economic and security agreement within 30 days.

Trump has recently intensified his global trade offensive, slapping tariffs on several nations — including close allies Japan and South Korea — and imposing a 50% duty on copper.

In an interview with NBC News published Thursday, Trump said other trade partners not yet formally notified should still expect broad tariffs. “Not everyone needs a letter,” he said. “We’re just setting the tariffs. The rest of the countries will pay — 15%, 20%, we’ll sort that out.”

Canada, the second-largest US trading partner after Mexico and the top buyer of American goods, imported $349.4 billion worth from the US last year, while exporting $412.7 billion, according to US Census Bureau figures.

Carney, who returned to power this year promising to address tensions with Washington, had aimed to finalize a trade deal by July 21. While Trump’s letter did not mention the status of negotiations, he noted the tariff levels “may be adjusted, up or down, based on our relationship with your country.”

Last month, Carney’s administration withdrew a proposed digital services tax on US tech firms after Trump abruptly pulled out of trade talks, calling the measure a “blatant attack.”