President Trump has notified Canadian Prime Minister Mark Carney that the United States will impose a 35% tariff on Canadian goods starting August 1, citing Canada’s failure to curb fentanyl trafficking and longstanding trade imbalances.
In a July 10 letter, Trump accused Canada of retaliating against earlier U.S. tariffs rather than cooperating to stop the flow of fentanyl into the country. He warned that goods transshipped to avoid the new tariff will still be subject to it, and that any retaliatory tariffs from Canada will result in additional U.S. penalties.
He said the tariff won’t apply if Canadian companies manufacture products in the U.S., promising fast-track approvals for such efforts. He also criticized Canada’s high tariffs on American dairy—reportedly up to 400%—and framed the trade deficit as a threat to national security.
Trump left room for adjustment, stating the tariffs could change depending on Canada’s willingness to address the fentanyl crisis.
