On Thursday, President Trump announced that a 35% tariff will be imposed on imports from Canada starting next month, indicating that overall taxes could surpass 10%.
At 79, Trump has communicated with Canadian Prime Minister Mark Carney regarding these new tariffs. It seems that these discussions took place amid deadlines approaching for a trade agreement with the U.S., which is set for August 1.
“It’s an honor for me to send this letter, especially given that the U.S. is committed to maintaining strong trade relations with Canada, despite recent financial responses from their side,” Trump noted in his correspondence.
If Canada does not establish a trade agreement with the U.S., the 35% tariff is slated to take effect on August 1.
“The U.S. had to impose tariffs on Canada to combat the fentanyl crisis in our country, and Canada has chosen to retaliate with their own tariffs,” Trump stated.
As of August 1, 2025, Canada will implement a 35% tariff on products shipped to the U.S., which will be separate from the existing fees for different sectors.
Trump cautioned Carney that any products designed to sidestep this new tariff will still be subject to the higher rate, which could increase further if Canada retaliates.
“Canadian companies manufacturing in the U.S. won’t face these tariffs, and my administration aims to ensure that approvals are given quickly and efficiently,” he added.
Last year, trade between the U.S. and Canada was valued at around $762.1 billion.
Trump referred to the trade deficit with Canada, estimated at $63.3 billion in 2024—a 1.4% decrease from the previous year—as a “significant threat” to both the economy and national security.
Earlier this year, he enforced a 25% tariff on items such as automobiles, aluminum, and steel from Canada.
Trump has claimed that Canada is not doing enough to prevent illegal fentanyl shipments.
“If Canada collaborated with me in addressing the fentanyl flow, we might consider revising this letter,” he said, adding that tariffs could fluctuate based on the U.S.-Canada relationship.
“Rest assured, you won’t be disappointed with the U.S. Thank you for understanding this issue!”
Previously, Trump had placed a 25% tariff on some Canadian imports not compliant with the US-Mexico-Canada Agreement (USMCA). It’s uncertain whether this exemption will remain in effect after August 1.
In a recent NBC interview, Trump suggested that the baseline tariff for 10% of all imports could rise. He mentioned, “We say we’re going to fund everything else in the country, whether it’s 20% or 15%. We’ll sort that out now.”
“I think people have responded positively to the tariffs,” he mentioned, noting that the stock market has hit a new high.
With the letter sent to Canada, Trump has now informed at least 23 countries about the lack of a trade agreement during a 90-day suspension concerning new tariffs.
This week, he also declared a 50% tariff on copper imports to start next month.
Trump remarked to NBC News, “Not everyone needs to receive the letter. We’re just putting tariffs in place.” The White House has yet to respond to requests for comments.
