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Trump Threatens 35% Tariffs on Canada Starting August 1

The move ties duties to Canada’s fentanyl enforcement as part of an effort to renegotiate U.S.-Canada trade terms.

Protesters wearing masks of U.S. President Donald Trump, right, and former President of Brazil Jair Bolsonaro demonstrate after Trump's announcement of 50% tariffs on Brazilian goods, in Sao Paulo Thursday, July 10, 2025. (AP Photo/Andre Penner)
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Overview

  • In a letter posted on Truth Social, Trump warned that a 35% levy on Canadian imports will begin August 1 unless Canada agrees to new trade conditions.
  • He justified the increase by citing Canada’s handling of fentanyl trafficking and pledged to add the same rate onto any Canadian counter-tariffs.
  • A U.S. administration official said the hike will likely apply only to goods outside the USMCA framework, though final terms have yet to be settled.
  • Prime Minister Mark Carney responded on X by promising to defend Canadian workers and businesses and to secure an agreement before the August 1 deadline.
  • The threat is part of a wider campaign of tariff letters sent to more than 20 countries during Trump’s drive to extract concessions in trade negotiations.