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Trump to Impose 35% Tariffs on Canada from August 1

In a move that sent shockwaves through global markets, U.S. President Donald Trump announced on Thursday that the United States will raise tariffs on Canadian imports to 35% starting August 1. The increase marks a sharp escalation from the current 25% rate and comes amid broader threats of 15–20% blanket levies on most other trading partners.

In a letter released via his social media platform, Trump told Canadian Prime Minister Mark Carney that the new rate could climb even higher if Canada retaliates. While the United States-Mexico-Canada Agreement (USMCA) exclusion and 10% duties on energy and fertilizer are expected to remain intact, no final word has been given on those carve-outs.

Trump cited a widening trade deficit and concerns over the flow of fentanyl as justification for the move. “If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” he wrote. Canadian officials counter that only a tiny fraction of fentanyl originates north of the border and point to recent border-security measures.

On X late Thursday, Carney vowed to defend Canadian workers and businesses as talks continue toward the August 1 deadline. “Canada has made vital progress to stop the scourge of fentanyl in North America,” he said, pledging joint efforts to “save lives and protect communities in both our countries.”

Beyond Canada, Trump has signaled a sweeping expansion of his trade fight—Japan, South Korea and other allies could face new 15–20% tariffs. “We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” he told NBC News.

  • New Canadian tariff rate: 35% from August 1
  • Current rate under USMCA: 25%, with some exemptions
  • Blanket tariffs: 15–20% on most other trading partners
  • Key issues: trade deficit, fentanyl flow, dairy and other barriers

As the trade skirmish intensifies, businesses and markets worldwide will be watching negotiations closely. With less than a month to go, the stakes have never been higher for Canada–U.S. relations and the global trading system at large.

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