Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies if Ottawa retaliates

President Donald Trump on Thursday announced a 35% tariff on Canadian imports, starting Aug

Trump cited fentanyl as a reason for the tariffs, while also complaining Ottawa's retaliatory duties

Canadian Prime Minister Mark Carney in his response said, "Canada has made vital gress to stop the scourge of fentanyl in North America

Amber Bracken | ReutersU

President Donald Trump on Thursday raised tariffs on Canadian imports to 35%, effective Aug. 1, complaining that Ottawa had retaliated with duties against Washington. "Instead of working with the United States, Canada retaliated with its own Tariffs," Trump said to Mark Carney, prime minister of Canada, in a letter posted on Truth Social

He attributed fentanyl as a reason for that rate in the letter: "If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter. "A total of 43 pounds of the drug was seized at the northern border during 2024 with an additional 58 pounds having been confiscated there so far this year, according to U

Customs and Border tection

Responding to Trump's announcement, Carney said in a post on X that "Canada has made vital gress to stop the scourge of fentanyl in North America

We are committed to continuing to work with the United States to s and tect communities in both our countries. ""The Canadian government has steadfastly def our workers and es

We will continue to do so as we work towards the revised deadline of August 1. "The 35% tariffs will be separate from all sectoral tariffs, Trump said, warning that the duty might be increased, if Canada retaliated

Other imports from Canada into the U

Energy imports from Canada are subject to a lower 10% levy. "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 said Thursday. "Goods transshipped to evade this higher tariff will be subject to that higher tariff. "Trump indicated that the tariff rates in the future will depend on how Washington's relationship with Ottawa pans out, while mentioning that his country faced challenges from Canada that went beyond fentanyl. "[Canada] has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States

The Trade Deficit is a major threat to our Economy and, indeed, our National Security. "Thursday's letter came after the two countries agreed to resume the trade talks on June 29 and to work on hammering out a deal by July 21, according to a statement from the Department of Finance Canada

Trump had threatened to end all trade discussions with Canada, one of its largest trading partners, over Ottawa's "digital services tax" on American firms

Canada withdrew that tax in order to restart trade talks with Washington

And a list of American exports including steel, aluminum, computers, apparel and food earlier this year

The countermeasures, Canada said in March, would stay "until the U

Eliminates its tariffs against Canadian steel and aluminum ducts

Total goods trade with Canada was $761. 8 billion in 2024, with Washington's deficit standing at $62 billion last year, according to U

In the first five months of this year, the U