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Saturday, Jul 12, 2025
Outside the box.
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
The U.S. President announces new tariffs effective August 1, responding to Canadian trade measures while linking them to opioid trafficking cooperation.
In an escalation of trade tensions, U.S. President Donald Trump has announced a 35% tariff on imports from Canada, set to take effect on August 1.
The announcement was made via a letter posted on Trump's social media platform, Truth Social, directed at Canadian Prime Minister Mark Carney.
Trump criticized Canada for imposing its own tariffs rather than collaborating with the United States.
He indicated that should Canada assist in combating the trafficking of the opioid fentanyl, the U.S. might reconsider the new tariff measures.
Fentanyl, a highly addictive opioid, has contributed to a severe public health crisis in the United States.
In February, following a previous tariff suspension declaration by Trump, Prime Minister Justin Trudeau promised to implement border protection measures intended to tackle fentanyl smuggling, stating that nearly 10,000 personnel would be engaged in border security and announcing the appointment of a 'fentanyl czar' to combat drug cartels.
This latest tariff announcement adds to existing tariffs already imposed by Trump on specific Canadian goods, including a 50% tariff on steel and aluminum imports, a 25% tariff on vehicles, and a newly declared 50% tariff on copper imports, all to take effect on August 1.
Trump further mentioned that if Canada were to raise its tariffs, this increase would be added to the newly announced U.S. tariff.
The announcement comes in the wake of bilateral trade negotiations, where both nations, on June 29, agreed to continue discussions aimed at reaching a trade agreement by July 21.
Trump had previously suspended the negotiations after Canada introduced a 3% tax on digital services applicable to American companies, but resumed talks following Canada's decision to withdraw the tax.
The trade volume between the U.S. and Canada was reported to be $761 billion in 2024, with a trade deficit of $62 billion for the United States.
In the first five months of 2025, the American trade deficit with Canada increased by 9.8% compared to the same period in the previous year.
Earlier in the week, Trump also announced a 50% tariff on Brazilian imports and varying tariffs of up to 40% on several other countries.
The announcement was made via a letter posted on Trump's social media platform, Truth Social, directed at Canadian Prime Minister Mark Carney.
Trump criticized Canada for imposing its own tariffs rather than collaborating with the United States.
He indicated that should Canada assist in combating the trafficking of the opioid fentanyl, the U.S. might reconsider the new tariff measures.
Fentanyl, a highly addictive opioid, has contributed to a severe public health crisis in the United States.
In February, following a previous tariff suspension declaration by Trump, Prime Minister Justin Trudeau promised to implement border protection measures intended to tackle fentanyl smuggling, stating that nearly 10,000 personnel would be engaged in border security and announcing the appointment of a 'fentanyl czar' to combat drug cartels.
This latest tariff announcement adds to existing tariffs already imposed by Trump on specific Canadian goods, including a 50% tariff on steel and aluminum imports, a 25% tariff on vehicles, and a newly declared 50% tariff on copper imports, all to take effect on August 1.
Trump further mentioned that if Canada were to raise its tariffs, this increase would be added to the newly announced U.S. tariff.
The announcement comes in the wake of bilateral trade negotiations, where both nations, on June 29, agreed to continue discussions aimed at reaching a trade agreement by July 21.
Trump had previously suspended the negotiations after Canada introduced a 3% tax on digital services applicable to American companies, but resumed talks following Canada's decision to withdraw the tax.
The trade volume between the U.S. and Canada was reported to be $761 billion in 2024, with a trade deficit of $62 billion for the United States.
In the first five months of 2025, the American trade deficit with Canada increased by 9.8% compared to the same period in the previous year.
Earlier in the week, Trump also announced a 50% tariff on Brazilian imports and varying tariffs of up to 40% on several other countries.
