Trump imposes 35% tariff on Canadian imports to US, effective August 1

Trump imposes 35% tariff on Canadian imports from August 1, warns of escalation if Ottawa retaliates; move part of broader push for blanket tariffs on multiple trade partners

US President Donald Trump on Thursday (local time) announced a 35 per cent tariff on Canadian imports, effective August 1, 2025. The move, he said, was a response to Canada’s alleged trade barriers and retaliatory actions.

 

The announcement was made through a letter to Canadian Prime Minister Mark Carney, posted on Trump’s Truth Social platform. This is the latest in a series of more than 20 such letters issued by Trump since Monday to various foreign leaders, outlining steep tariff hikes. In his message to Canada, Trump accused Ottawa of failing to cooperate on key issues, particularly the flow of fentanyl into the US and of engaging in unfair trade practices.

 

 

In the letter, Trump stressed that while trade with Canada would continue, it would do so on revised terms. “Starting August 1, 2025, we will charge Canada a tariff of 35 per cent on Canadian products sent into the United States, separate from all sectoral tariffs,” he wrote. 

Trump links tariffs to fentanyl crisis

 

Trump accused Canada of failing to curb the flow of fentanyl into the US and claimed this contributed to the decision. “The United States imposed tariffs on Canada to deal with our nation’s fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our country,” he wrote.

 

He further warned that any attempt to evade the tariff through transshipment would attract a higher duty. 

 

Trump warns against Canadian counter-measures

 

In a direct warning to Ottawa, Trump said any Canadian counter-tariff would invite a proportional escalation from the US. “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 per cent  that we charge,” he wrote. 

 

Trump slams Canada’s dairy tariffs

 

Trump reiterated longstanding US grievances over Canadian tariffs on American dairy products. “Canada charges extraordinary tariffs to our dairy farmers, up to 400 per cent and that is even assuming our dairy farmers have access to sell their products in Canada,” he said.

 

Trump called the trade imbalance as more than an economic issue. “The trade deficit is a major threat to our economy and, indeed, our national security!” he wrote.

 

Trump offers incentives for Canadian companies

 

The letter included an offer of expedited regulatory approvals for Canadian companies that shift 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 promised. 

 

Blanket tariffs likely on more trade partners

 

The Canada move comes amid a broader global tariff push by President Trump, who has so far issued tariff letters to 22 countries, including a 50 per cent duty on imports from Brazil and on copper, both effective August 1.

 

In an interview with NBC News on Thursday (local time), Trump said that other trading partners—those yet to receive formal letters—would likely face blanket tariffs of 15 or 20 per cent. “Not everybody has to get a letter,” he said. “We’re just going to say all of the remaining countries are going to pay, whether it’s 20 per cent or 15 per cent. We’ll work that out now.”