Trump slaps 35% tariff on Canadian imports, escalating trade tensions

Washington and Ottawa are once again at odds, as President Trump unveils a sharp new tariff on Canadian goods—citing drug trafficking and trade disputes just weeks ahead of a key deadline.

President Donald Trump has announced a sweeping 35% tariff on all Canadian imports, set to take effect on August 1. The move, shared via a letter on his social platform, is being justified on national security grounds, with Trump accusing Canada of failing to stop fentanyl smuggling into the United States and maintaining unfair trade practices.

The tariff decision has sparked concern in Ottawa. Prime Minister Mark Carney responded by reaffirming Canada’s efforts to curb synthetic drug trafficking, including a $950 million investment in border enforcement and the appointment of a national anti-fentanyl coordinator. However, he also signalled readiness to negotiate, stressing that Canada will defend its economic interests.

Markets reacted swiftly, with U.S. stock indices slipping and trade analysts warning of supply chain disruptions. The move may also test the limits of the USMCA trade agreement, as legal questions arise over the use of national security exemptions.

Trump has hinted at similar tariffs for other countries lacking trade deals with the U.S., raising the prospect of broader trade conflicts in the coming weeks.

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