July 11, 2025: In a move that further strained relations between the two nations, US President Donald Trump announced on Thursday a 35% tariff on Canadian goods that will go into effect on August 1. It’s a reaction to “Canada’s retaliation” and persistent trade obstacles, according to Trump.
The president of the United States also declared his intention to apply general tariffs of 15–20% on the majority of other trading partners.
Trump explained his justifications for the significant tariff increase in an official letter that was shared on Truth Social. He accused Canada of unfair trade practices and of not cooperating on important matters, including the flow of fentanyl into the US.
Canadian Prime Minister Mark Carney responded to the action by defending Canada’s trade policy and anti-fentanyl initiatives. “The Canadian government has resolutely defended our workers and businesses throughout the current trade negotiations with the United States,” he wrote in a post on X. As we approach the updated deadline of August 1, we will keep doing this.
Carney added that during the negotiations, Otawa has remained dedicated to safeguarding its businesses and employees. “Canada has made significant strides in combating the fentanyl epidemic in North America. We’re determined to keep collaborating with the US to save lives and safeguard communities in both nations.”
Carney also emphasized Canada’s advancements in fortifying international trade alliances and creating a unified economy. “We are strengthening Canada. In creating a single Canadian economy, the federal government, provinces, and territories are making great strides. We are in a position to construct a number of significant new projects that will benefit the country. We are fortifying our international trading alliances.”
Trump has so far sent letters to 22 nations laying out new tariff rates, one of which being a 50% tax on Brazilian products. Additionally, he said that imports of copper will be subject to a 50% duty starting on August 1.
DEFICIT IN TRADE AND FENTANYL
The US President emphasized in his letter that the US would maintain its trade relationship with Canada, but on updated conditions. “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,” the letter stated.
He said that “goods transshipped to evade this higher Tariff will be subject to that higher Tariff” and cautioned against attempts to use transshipment as a means of avoiding the levy.
Trump threatens to retaliate if Canada reacts.
Trump issued a clear warning to Ottawa, stating that further tariffs would be applied to any Canadian response. “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 stated.
Additionally, Trump criticized Canada’s long-standing “extraordinary” dairy export barriers and blamed them for the US 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 stated.
The letter also stated that the administration will help Canadian businesses obtain rapid regulatory permits if they decide to relocate their operations to the US. “We will do everything possible to get approvals quickly, professionally, and routinely — in other words, in a matter of weeks,” Trump wrote in his letter.
TRUMP AIMS TO IMPROVE COUNTRIES WITH BLANKET TARIFFS
Trump stated that the European Union and Canada might receive tariff letters by Friday on the general duties on the majority of trading partners.
The US President stated in an interview with NBC News on Thursday that broad tariffs would probably be imposed on additional trading partners who had not yet received such letters.
“Not everyone must receive a letter. You are aware of that. Our tariffs are just being set,” Trump said to the network.
“We will simply state that all of the remaining nations will contribute, whether it be 15% or 20%. According to the network, he stated, “We’ll figure that out now.”
“The tariffs, in my opinion, have been favorably accepted. “Today, the stock market reached a new high,” the US president continued.