Trump targets Canada with 35% tariff, others may face 20%

Dubai: US President Donald Trump announced Thursday that a 35% tariff on Canadian imports will take effect August 1, warning the rate could rise if Canada retaliates.

In a letter posted on his social media platform, Trump notified Canadian Prime Minister Mark Carney of the decision and said blanket tariffs of 15% to 20% will soon apply to most other US trading partners.

The announcement marks a significant escalation in Trump’s ongoing trade war, which now includes new tariffs on Japan, South Korea, and a 50% duty on copper.

In a separate interview with NBC News, Trump said countries that haven’t received formal letters should still expect to be affected.

“We’re just setting our tariffs,” he said. “All the remaining countries are going to pay—whether it’s 20% or 15%.”

The move has raised uncertainty over the future of the USMCA trade agreement, as it’s unclear whether existing exemptions for Canadian goods under the pact will remain in place

In the letter posted online, Trump accused Canada of contributing to the US fentanyl crisis and retaliating against American tariffs. He claimed this "failure" justified the steep 35% tariff.

“The United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis… Instead of working with the United States, Canada retaliated,” he wrote.

He also criticised Canada’s dairy tariffs—claiming they reach up to 400%—and described the US trade deficit with Canada as a national security threat.
Trump warned that any attempt to bypass tariffs via transshipment would result in enforcement of the higher rate. He also promised fast-track regulatory approvals for companies relocating to the US.

Trump suggested that the tariff rate could be adjusted based on Canada’s willingness to cooperate on fentanyl smuggling and broader trade matters.

“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter… You will never be disappointed with The United States of America,” he said.

This isn't Trump’s first clash with Canada over trade.

Last month, he threatened tariffs over Canada’s proposed digital services tax, which would have affected US tech giants. Canada postponed the tax at the last minute to avoid escalating the dispute.

On the campaign trail, Trump has even joked about making Canada the 51st US state, highlighting the strained relationship.

In another NBC interview, Trump said he plans to raise blanket tariffs on most trading partners from the current 10% to between 15% and 20%.
Exact rates are still being finalized, but Trump emphasized that these tariffs will apply broadly unless countries negotiate “better terms.”

He added that the recent rise in US stock markets supports his aggressive trade stance.

Earlier this week, Trump announced a 50% tariff on Brazilian imports, citing political reasons and calling former President Jair Bolsonaro’s trial a “witch hunt.”

He also imposed new tariffs on seven additional countries:

Trump warned that any retaliatory action would lead to matching increases in US tariffs.

On Monday, Trump’s administration issued tariff letters to 14 more nations, including Japan, South Korea, Thailand, and South Africa.
These reciprocal tariffs will also take effect on August 1, 2025.

In a follow-up post on Truth Social, Trump stressed: “TARIFFS WILL START BEING PAID ON AUGUST 1, 2025… There will be no change. No extensions will be granted.”

Together, these announcements signal Trump’s renewed embrace of protectionist trade policies as a cornerstone of his potential second term.
With dozens of countries now targeted—and more letters likely—Trump is reaffirming that tariffs remain his primary tool for reshaping global trade.