Washington (TDI): US President Donald Trump announced on Thursday that his administration will impose a 35% tariff on goods imported from Canada starting August 1, escalating trade tensions with United States’ northern neighbor.
In a letter addressed to Canadian Prime Minister Mark Carney, Trump warned that the tariff could climb even higher if Canada retaliates. He also signaled upcoming blanket tariffs ranging from 15% to 20% for other trading partners around the world.
Carney responded publicly on social media, vowing to defend Canadian interests. “We will continue standing up for Canadian workers and businesses as we move forward in negotiations,” he wrote late Thursday on X.
The new tariff marks a sharp jump from the existing 25% rate and comes at a crucial moment for Carney, who is trying to finalize a fresh trade agreement with Washington.
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Despite the announcement, certain key sectors appear to be spared for now. Goods already covered under the United States-Mexico-Canada Agreement (USMCA) are expected to remain unaffected, and existing 10% tariffs on Canadian energy and fertilizers are not expected to change.
In his letter, Trump criticized Canada’s trade practices, accusing the country of putting up tariff and non-tariff barriers that harm American dairy farmers and others. He also cited concerns about the flow of fentanyl into the US from Canada, calling it a threat to both economic stability and national security.
“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump said.
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Canadian officials have pushed back on the accusation, saying only a small fraction of fentanyl found in the US originates from Canada. Still, Carney said his government remains committed to working with Washington to “save lives and protect communities” on both sides of the border.
Carney, who returned to power earlier this year after leading the Liberal Party to an election win, had pledged to settle trade and security issues with the US within 30 days. That window is set to close on July 21, just days before the new tariff takes effect.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
