Trump Threatens 35% Tariff on Canadian Goods Amid Stalled Trade Talks

U.S. President Donald Trump has announced plans to impose a sweeping 35% tariff on Canadian imports starting August 1, escalating tensions just days before a self-imposed deadline for a new trade agreement between the two countries.

The declaration was made Thursday via a letter posted on Trump’s social media platform, Truth Social. In the post, Trump also warned of additional blanket tariffs ranging between 15% and 20% on most U.S. trading partners, including upcoming levies on the European Union.

The move has drawn sharp concern in Ottawa. Canadian Prime Minister Mark Carney responded on social media, affirming that his government remains committed to protecting Canadian jobs and businesses while continuing negotiations toward a new trade deal.

The U.S. president has reportedly issued over 20 similar letters to other global partners in recent days, all threatening new tariffs by August 1. It remains unclear whether the proposed tariffs will apply to goods covered under the Canada-United States-Mexico Agreement (CUSMA).

Canada, which sends approximately 75% of its exports to the U.S., stands to be significantly affected by the proposed measures. The country’s automotive and metals industries, in particular, are vulnerable. Many of those sectors are already reeling from existing Trump-era tariffs, including a 25% blanket tariff on some Canadian goods and additional global tariffs—50% on steel and aluminium, and 25% on non-U.S.-built vehicles.

Adding to the pressure, Trump announced a forthcoming 50% tariff on copper imports, set to take effect next month.

In his letter, Trump claimed the 35% tariff would be waived if Canadian businesses relocate manufacturing operations to the United States. He also linked the punitive measures to what he described as Canada’s “failure” to stop fentanyl from entering the U.S., as well as existing Canadian tariffs on U.S. dairy products and the trade imbalance between the two nations.

“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump stated. “These tariffs may be modified, upward or downward, depending on our relationship with your country.”

Carney swiftly rebutted the fentanyl claims, stating on X (formerly Twitter) that Canada has made “essential progress” in tackling the opioid crisis and reaffirmed the country’s commitment to working with the U.S. on border and public health issues.

Data from U.S. Customs and Border Protection shows that just 0.2% of fentanyl seizures occur at the Canadian border, with the vast majority intercepted at the U.S.-Mexico border. In response to earlier complaints from Trump, the Canadian government had already increased funding for border security and appointed a national coordinator to combat fentanyl trafficking.

As tensions escalate, businesses on both sides of the border are bracing for the economic fallout should the tariffs go into effect.