U.S. President Donald Trump has declared a 35% tariff on Canadian imports, taking effect August 1, despite both nations working to finalize a new trade agreement before a self-imposed deadline.
On Thursday, Trump sent a letter to Canada shortly after an interview in which he cautioned European Union countries to prepare for a potential tariff announcement within the next day.
In his letter posted on Truth Social, Trump stated that “Instead of working with the United States, Canada retaliated with its own Tariffs.”
In response, Canadian Prime Minister Mark Carney affirmed that his government remains committed to defending Canada’s workforce and industries as the revised trade deadline approaches.
Canada is already facing a blanket 25% tariff on select exports, alongside significant impacts from U.S. tariffs on steel, aluminum, and automobiles. While goods that meet the requirements of the Canada-United States-Mexico Agreement (CUSMA) currently enjoy exemptions, it’s uncertain whether the newly proposed tariffs will extend to CUSMA-compliant products.
Trump also warned that any goods rerouted to bypass the increased tariff will face a higher tariff and added that if Canada responds with countermeasures, the tariff will rise further.
Canada exports roughly three-quarters of its goods to the United States and plays a key role in auto manufacturing and metal supply, making U.S. tariffs particularly disruptive to these industries.
Canada has been actively negotiating with the United States in recent months to finalize a new trade and security agreement. During the G7 Summit in June, Carney and Trump pledged to reach a deal within 30 days, establishing a deadline of July 21.
In late June, Carney withdrew the proposed digital services tax on major U.S. tech companies, following President Trump’s sharp criticism of the measure as a ‘blatant attack’ and his threat to end trade negotiations. Carney explained that the decision was part of a broader effort to advance trade discussions between Canada and the United States.
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