Trump Announces 35% Tariff on Canadian Exports Amid Trade Negotiations
New Tariff Imposed on Canadian Goods
Starting August 1, a 35% tariff will be levied on Canadian exports to the United States, as stated by President Donald Trump in a letter addressed to Canadian Prime Minister Mark Carney on Thursday.
This letter is part of a series of over 20 communications Trump has sent to various nations since the beginning of the week, reflecting his ongoing trade conflict.
Trump's correspondence with Carney arrives while Canada and the US are in the midst of negotiating a trade agreement. Both Canada and Mexico are working to revive their trilateral trade pact.
The United States-Mexico-Canada Agreement (USMCA) replaced the North American Free Trade Agreement in 2020, following Trump's push for a renegotiation during his initial term. A review of the USMCA is scheduled for July 2026.
Despite these negotiations, Trump has criticized Canada and Mexico for not doing enough to curb the flow of undocumented migrants and drugs into the US.
In response to Trump's announcement, Carney emphasized that Ottawa will continue to protect its businesses.
“Throughout the ongoing trade discussions with the United States, the Canadian government has consistently defended our workers and businesses,” Carney remarked on social media. “We will persist in this effort as we approach the August 1 deadline.”
Trump's reciprocal tariffs initially came into effect on April 9. Shortly thereafter, he lowered the rates on imports from most nations to 10% for a period of 90 days to facilitate trade discussions.
Prior to this, the US had already imposed a 25% tariff on various products from Canada, Mexico, and China in February.
Trump has frequently reiterated his intention to implement a reciprocal tax on numerous countries, citing their high tariffs on American goods.
These tariff proposals have raised alarms about a potential trade war that could destabilize the global economy and lead to a recession.
The deadline for concluding trade negotiations has been set for August 1.
However, Trump informed NBC News on Thursday that he is considering a blanket tariff of 15% or 20% on most trading partners, with the current blanket tariff rate at 10%.
“Not every country needs to receive a letter,” Trump stated. “We’re simply establishing our tariffs. All remaining countries will incur a fee, whether it’s 20% or 15%. We’ll finalize that soon.”
On Sunday, Trump announced that Washington would impose an additional 10% tariff on nations aligning with the “anti-American policies” of the BRICS coalition.
The BRICS group includes India, Brazil, Russia, China, Saudi Arabia, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. The US perceives this coalition as an attempt to create an economic counterbalance to its influence.