Trump increasing Canada tariffs to 35% Aug. 1
One of the first countries to have tariffs assessed on its U.S. imports by President Donald Trump now faces additional sanctions.
In a letter sent to Canadian Prime Minister Mark Carney that was posted on his social network Truth Social by Trump, the president said that beginning Friday, Aug. 1, the United States will impose a 35% tariff on all goods imported from Canada, separate from any other sectoral tariffs that may apply.
In a series of executive orders issued in March 2025, Trump enacted a 25% tariff on nearly all goods coming to the U.S. from Canada, citing what he said was a flow of illegal drugs including fentanyl over the U.S.-Canada border.
At that time he also placed tariffs on goods from Mexico and China. Most China tariffs have since been paused until mid-August as the two countries attempt to negotiate a trade deal.
Since September 2024, nearly all fentanyl seized by the U.S. came through the Southern border with Mexico, according to the U.S. Customs and Border Patrol (CBP), reported ABC News. Less than 1% of fentanyl was seized at the Northern border with Canada, CBP found.
In response, then-Canadian Prime Minister Justin Trudeau said Canada would impose tariffs on more than $100 billion of American goods over the course of 21 days. Canadian retailers including Loblaw Co. and the Liquor Control Board of Ontario took steps to find alternate Canadian suppliers to replace U.S. goods.
Trump cited several reasons for his decision to increase the baseline Canadian tariff rate, including what he said are Canada’s failure to stop the flow of illegal drugs entering the U.S. as well as "unsustainable" trade deficits against the U.S. and "extraordinary" tariffs on U.S. dairy farmers as high as 400%.
A levy higher than 35% will apply to any Canadian imports which are “transshipped” (sent to the U.S. via a third country to evade the tariff rates), and any retaliatory tariffs imposed by tariffs on U.S. goods will have the same percentage added on to the 35% Canadian tariff rate.
Trump also said in the letter that if Canada works with the U.S. to halt the flow of fentanyl over the border, he could adjust tariffs on their imports in return. Tariffs will not apply to products Canadian companies manufacture or build in the U.S.
“Canada has made vital progress to stop the scourge of fentanyl in North America,” said in a post on his official X social media account. “We are committed to continuing to work with the United States to save lives and protect communities in both our countries. The Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1.”
Canada was not included among the countries targeted for reciprocal tariffs initially placed on April 2, since it already had a 25% rate imposed on its goods. Those reciprocal tariffs were initially delayed from going into effect until Wednesday, July 9 and have since been postponed until Friday, Aug. 1.
[READ MORE: Trump pauses most reciprocal tariffs]
In multiple actions earlier this week, Trump placed additional tariffs on imports from countries including Japan and South Korea as part of the delayed tariff initiative and set a new 50% tariff on Brazilian imports, effective Aug. 1.
Trump also reached an agreement in May with U.K. prime minister Keir Starmer that will increase U.S. access to U.K. markets while limiting tariffs on U.K. imports.
