U.S. President Donald Trump has announced he will be imposing a 35% tariff on Canadian imports effective August 1, 2025, up from the current 25% rate.
Trump cited concerns about fentanyl flows and trade barriers hurting U.S. farmers, threatening further increases if Canada retaliates. An exclusion is expected for USMCA (United States-Mexico-Canada Agreement) covered goods, and 10% tariffs on energy and fertilizers are also expected to remain in place, though not formally confirmed by the Trump administration. Canadian Prime Minister Mark Carney, who’s party recently won the Canadian federal election on promises to address U.S. trade challenges, vows to defend Canadian workers and businesses in these U.S. negotiations.
This recent tariff announcement is part of a broader trade offensive, with Trump considering blanket tariffs of 15-20% on most other remaining countries not yet addressed.
