Trump Imposes 35% Tariff on Canadian Imports

Trump imposes steep tariffs on Canadian imports, citing trade imbalances and fentanyl concerns.

Canadian Prime Minister Mark Carney with President Donald Trump (via @MarkJCarney on X)

President Trump announced Thursday that the U.S. will impose a 35% tariff on select Canadian imports starting August 1, escalating trade tensions between the longtime allies.

Goods compliant with the U.S.-Mexico-Canada Agreement (USMCA) will be temporarily exempt, though a White House official warned that could change. (WSJ)

Tariffs Tied to Fentanyl, Digital Tax Disputes

The new tariff replaces an existing 25% rate and follows a breakdown in talks earlier this month.

Trump posted a letter to Canadian Prime Minister Mark Carney stating the increase was in response to what he called an “egregious” digital tax and insufficient action to curb fentanyl trafficking.

“These Tariffs will be modified, upward or downward, depending on our relationship with your Country,” Trump wrote. (WSJ)

Canada Responds as Tensions Rise

Carney said on X that Canadian officials are working toward a deal by the August deadline.

Meanwhile, Canada has pledged nearly $1 billion to strengthen border security and appointed a new “border czar,” though officials maintain fentanyl flows from Canada to the U.S. are minimal. (WSJ)

Trade with the U.S. makes up nearly 20% of Canada’s GDP. Economists warn that continued uncertainty could deepen economic challenges, including a recent rise in unemployment.

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