President Donald Trump has announced a steep increase in tariffs on Canadian imports, escalating trade tensions with U.S.’s northern neighbor. In a letter posted to his social media platform, Trump informed Canadian Prime Minister Mark Carney that a 35% tariff would take effect on August 1, up from the current 25%.
Trump warned the rate could rise further if Canada retaliates. Trump also signaled plans to impose blanket tariffs of 15% or 20% on most other trading partners, marking a significant expansion of his trade war strategy.
The White House indicated that goods covered under the USMCA, as well as existing 10% tariffs on energy and fertilizer, are expected to remain unchanged for now.
Trump justified the move by citing concerns about trade imbalances, barriers to U.S. agricultural exports and what he called a flow of fentanyl from Canada, a claim Canadian officials dispute. Carney responded by reaffirming Canada’s efforts to combat fentanyl trafficking and pledging to protect Canadian interests in ongoing trade talks.
The announcement has rattled global markets. Investors are closely watching for Trump’s next move, especially regarding tariffs on the European Union. Trump hinted in a recent interview that more countries would soon face similar tariffs, stating his administration was preparing to apply uniform rates regardless of individual negotiations.
Canada, the second-largest U.S. trading partner, had been in talks to finalize a new economic and security agreement by late July, but Trump’s tariff push now threatens to derail those efforts.
Shongjog 