US President Donald Trump has declared 35 percent tariffs on Canadian imports, effective August 1, through an official letter sent to Canadian Prime Minister Mark Carney. The move aims to address both the ongoing fentanyl crisis and the high US-Canada trade deficit, which Trump argues are harming American interests.
Details of the new tariffs
The 35 percent tariffs will be applied across Canadian goods, outside of existing sectoral tariffs. Trump warned of further hikes if Canada raises its tariffs on US products. Transshipped goods, items rerouted through third countries to bypass US tariffs, will face even higher duties. Trump stated that if Canadian companies move their manufacturing to the US, these tariffs will be removed.
Fentanyl and trade deficit: Core justifications
Trump claimed that Canada has failed to stop the flow of fentanyl into the United States, while retaliating with its own tariffs instead of working in cooperation. He argued that the fentanyl issue is a national security threat to Americans and Canada’s trade surplus with the US contributes to economic imbalance. He added that the tariff level could be adjusted depending on Canada’s future cooperation on these issues.
Canada responds: Trade deal talks before August 1
Prime Minister Mark Carney responded by emphasizing that Canada is committed to working with the US to find a constructive solution before the August 1 deadline. “Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the US to save lives and protect communities in both our countries,” Carney said.