Trade war intensifies: Trump imposes 35 percent import tariff on Canada
The United States will impose a 35 percent import tariff on some Canadian products starting August 1. President Donald Trump informed Canadian Prime Minister Mark Carney of this in a letter published on Truth Social.
According to Trump, the measure is a response to Canadian tariffs. "Instead of cooperating with the United States, Canada responded with its own tariffs," he wrote.
Trump complains about the drug Fentanyl, which is said to be coming to the US from Canada and other countries, and import tariffs and trade barriers that he says are leading to "unsustainable trade deficits" for the US.
The letter to Carney is the latest in a series of more than twenty letters Trump sent to world leaders this week. Trade deals with all the countries he received failed to reach.
RatesThe new tariff is a setback for Carney, who has tried to avoid US tariffs.
The new tariff applies to Canadian products that fall outside the USMCA trade agreement between the US, Canada, and Mexico. Existing exemptions remain in place for imports covered by that agreement, a US government official told Bloomberg.
Trump is considering imposing import tariffs of 15 to 20 percent on most countries, he told NBC News. This tariff would apply to products from countries for which the US government has not announced a specific tariff.
"We're going to say that all other countries will pay, whether it's 20 percent or 15 percent," he said. Currently, the US maintains a 10 percent tariff across the board, although certain products, such as steel and autos, face higher levies. "I think the tariffs have been well received. The stock market has reached a new record high," the president said, referring to the S&P 500 index's record high on Thursday.
A lower 10 percent tariff on energy products and higher levies on metals, among other things, will also remain in place. The plans have not yet been formalized, the official warned to Bloomberg. This approach will significantly limit the impact on trade relations with Canada compared to a general increase to 35 percent.
Second importerYet the tone of Trump's letter suggests he wants to escalate rather than wind down his trade war with his northern neighbor. He previously publicly expressed the idea that Canada "should seriously consider becoming the 51st state of the United States."
Canada is the US's second-largest trading partner after Mexico. It is also the largest importer of American goods. In 2024, Canada imported US$349 billion from the US and US$413 billion from the US.
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