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U.S. President Donald Trump and Canada’s Prime Minister Mark Carney talk during a family photo at the G7 Summit in Kananaskis, Alberta, Canada, June 16, 2025. <\/p>\n
Amber Bracken | Reuters<\/p>\n<\/div>\n<\/div>\n<\/div>\n
U.S. President Donald Trump on Thursday announced a 35% tariff on Canadian imports, starting Aug. 1, citing that Ottawa had retaliated with tariffs against Washington.<\/p>\n
“Instead of working with the United States, Canada retaliated with its own Tariffs,” Trump said to Mark Carney, prime minister of Canada, in a letter posted on Truth Social<\/a>.<\/p>\n He attributed fentanyl as a reason for the rate in the letter and said: “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter.”<\/p>\n The 35% tariffs will be separate from all sectoral tariffs, Trump said, threatening that the duty might be increased, if Canada continues to retaliate.<\/p>\n “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% that we charge,” Trump said in the post.<\/p>\n “Good transshipped to evade this higher tariff will be subjected to that higher tariff,” the letter said.<\/p>\n Canadian imports currently face a 25% tariff that Trump imposed<\/a> earlier this year over the country’s alleged role in the flow of fentanyl, with exemptions for those in compliance with the United States-Mexico-Canada Agreement. Energy resources from Canada are subject to a lower 10% levy<\/a>.<\/p>\n Thursday’s letter came after the two countries agreed to resume the trade talks<\/a> on June 29 and to work on hammering out a deal by July 21, according to a statement <\/a>from the Department of Finance Canada.<\/p>\n Trump had threatened to end all trade discussions with Canada, one of its largest trading partners, after Ottawa said it would not pause the imposition of a digital services tax on American firms. Canada later withdrew the digital services tax<\/a> in order to restart the trade talks with Washington.<\/p>\n