Trump puts 35% tariff on Canada, eyes 15%-20% tariffs for others

U.S. President Donald Trump announced on Thursday that the United States will impose a 35% tariff on Canadian imports starting 1 August, increasing the previous rate of 25%. He also revealed plans to introduce blanket tariffs of 15% to 20% on most other trade partners.

In a letter shared on his social media platform, Trump informed Canadian Prime Minister Mark Carney of the upcoming tariff hike, warning it could rise further if Canada retaliates. The move deals a setback to Carney, who had been trying to secure a new trade deal with Washington.

An official from the Trump administration noted that exemptions under the United States-Mexico-Canada Agreement (USMCA) would remain in effect, and existing 10% tariffs on energy and fertilizers were unlikely to change though final decisions were still pending.

Trump used the letter to criticise Canada over trade barriers and accused it of contributing to the flow of fentanyl into the U.S., which he claimed harmed American industries, including dairy. He argued that the U.S. trade deficit with Canada posed a national security risk.

Canadian authorities disputed the fentanyl claim, saying only a very small share of the drug comes from Canada, and that efforts have been made to secure the border.

Trump suggested in his letter that cooperation from Canada on stopping fentanyl imports could prompt a reconsideration of the tariff increase.

Carney’s office did not issue an immediate response, though he recently said both leaders had agreed to finalise a new economic and security pact within 30 days.

Trump has recently expanded his trade agenda, introducing new tariffs on countries such as Japan and South Korea, and a 50% tariff on copper. In an interview with NBC News, he said other nations could soon face similar tariffs even without direct notifications.

“Not everyone needs a letter,” Trump said. “We’re just setting the tariffs. The rest will pay, whether it’s 15% or 20%, we’ll sort that out.”

Canada, the U.S.’s second-largest trade partner after Mexico, purchased $349.4 billion worth of American goods last year and exported $412.7 billion to the U.S., according to U.S. Census Bureau data.

Carney, whose Liberal Party returned to power earlier this year with a focus on resolving U.S. trade tensions, had been working toward a new bilateral agreement by 21 July. While Trump did not mention the status of those talks, he did indicate in the letter that tariff rates could change depending on future relations between the two countries.

Notably, Carney's government recently dropped plans for a digital services tax on U.S. tech companies after Trump abruptly cut off negotiations, calling the proposed tax a "blatant attack."

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