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

U.S. President Donald Trump on Thursday announced a 35% tariff on Canadian imports, starting Aug. 1, citing that Ottawa had retaliated with tariffs 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 the rate in the letter and said: “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter.”

The 35% tariffs will be separate from all sectoral tariffs, Trump said, threatening that the duty might be increased, if Canada continues to retaliate.

“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 in the post.

“Good transshipped to evade this higher tariff will be subjected to that higher tariff,” the letter said.

Trump also added that the tariffs could be raised further, or slashed, depending on how Washington’s relationship with Ottawa pans out, while mentioning that his country faced challenges from Canada that go 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!”

Canadian imports currently face a 25% tariff that Trump imposed earlier this year over the country’s alleged role in the flow of fentanyl, with exemptions for those in compliance with the United States-Mexico-Canada Agreement. Energy resources from Canada are subject to a lower 10% levy.

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, after Ottawa said it would not pause the imposition of a digital services tax on American firms. Canada later withdrew the digital services tax in order to restart the trade talks with Washington.