Trade Tensions Rise as Trump Threatens 35% Tariff on Canadian Goods

In a dramatic escalation of trade tensions, U.S. President Donald Trump has announced plans to impose a 35% tariff on all Canadian imports starting August 1. The move, revealed in a letter to Canadian Prime Minister Mark Carney and posted on Truth Social, cites Canada’s alleged failure to curb fentanyl trafficking and longstanding trade disputes as key reasons.

Trump’s letter accuses Canada of retaliating against previous U.S. tariffs and maintaining “extraordinary” levies on American dairy products—some reportedly as high as 400%. He warned that any Canadian countermeasures would result in additional tariffs beyond the proposed 35%.

The Canadian government, led by Prime Minister Carney, responded by reaffirming its commitment to defending Canadian workers and businesses. Carney emphasized that negotiations are ongoing ahead of the revised August 1 deadline.

This latest threat follows a series of aggressive trade actions by the Trump administration, including tariffs on Canadian steel, aluminum, automobiles, and copper. Analysts warn that the new tariff could severely impact Canada’s export-heavy economy, especially sectors like manufacturing and agriculture that rely heavily on U.S. markets.

Whether the tariff will be implemented remains uncertain, as Trump indicated the rate could be adjusted “upward or downward” depending on Canada’s cooperation on fentanyl and trade issues. For now, businesses on both sides of the border are bracing for what could be a turbulent summer in North American trade.