Trump Hits Canada With 35% Tariff, Threatens Global Trade Shakeup
Donald Trump has kicked off another round of trade war drama, announcing a 35% tariff on Canadian imports starting August 1st—with warnings that more countries could be next in line for steep economic penalties.
In a direct move that reignites global trade tensions, Trump sent an official letter to Canadian Prime Minister Mark Carney late Thursday. In it, he confirmed the tariff hike and issued a sharp warning: if Canada dares to retaliate, the rate will go even higher.
Just hours before, Trump had told NBC News that Europe and other U.S. trading partners should brace for similar tariff announcements within days. The former president declared that countries without a “reciprocal deal” will face blanket tariffs of 15% or 20%—possibly more.
“We’re not sending out letters to everyone. Some countries are just going to pay—either 20% or 15%. We’ll work out the details,” Trump told NBC.
In response, Carney fired back on social media, vowing to stand up for Canadian workers and industries amid the rising pressure.
“Canada will continue to defend its workers and businesses during these difficult trade discussions,” he posted. “We’re committed to resolving this by the August 1 deadline.”
But the tension didn’t stop at trade. Trump also took a jab at Canada over the flow of fentanyl into the U.S., claiming that if Canada helps stop the influx, he might reconsider the tariff terms.
Canadian officials quickly shot back, pointing out that only a very small amount of fentanyl entering the U.S. comes from Canada. Carney emphasized Canada’s ongoing role in fighting the opioid epidemic:
“Canada is deeply committed to tackling fentanyl, and we’ll continue to work with the U.S. to save lives and protect communities on both sides of the border.”
Meanwhile, former U.S. officials have voiced concern that Trump’s trade policy could actually make it easier for dangerous drugs to reach the country due to weakened international cooperation.
A White House official noted that products covered under the USMCA trade deal—which replaced NAFTA in 2020—might be exempt from the new tariffs, though no final decision has been made yet. If granted, such exemptions would significantly lessen the blow to Canadian exporters.
Trump has already imposed a series of tariffs this year, including a 25% tax on Canadian cars and parts in March and a 50% tariff on steel and aluminum in June. This new move expands the hit to nearly all remaining goods from Canada.
While Canada and the U.S. remain locked in high-stakes negotiations, Trump’s aggressive new announcement casts doubt on whether a revised trade agreement can be finalized in time.
The 35% tariff announcement is just one of over 20 letters Trump has issued globally this week, as he ramps up pressure on countries to accept his “America First” trade agenda.
Still, there’s a catch. A federal court decision expected on July 31st—just one day before the tariff takes effect—could strip Trump of the legal authority to impose such tariffs. In May, a judge ruled that Trump had overreached by invoking emergency powers without clear justification.
That ruling is now under appeal and will be heard by the U.S. Court of Appeals for the Federal Circuit in Washington D.C.
While Canada and Mexico work behind the scenes to appease Trump and salvage the USMCA pact, his trade war tactics are complicating progress. Earlier this year, both countries were hit with 25% U.S. tariffs, though Canadian energy exports received a smaller rate.
Relations between Trump and Carney had recently appeared to improve. In May, Carney even visited the White House, meeting with Trump in what insiders described as a cordial exchange.
However, things turned sour again when Canada introduced a digital services tax targeting U.S. tech firms. Trump abruptly walked away from trade talks, and Canada eventually withdrew the tax to reopen negotiations.
Now, Trump is broadening his tariff threats, targeting not only Canada but also allies like Japan and South Korea, while floating a massive 50% tariff on copper.
“Not everyone will get a letter. Some will just get hit with tariffs,” Trump said in his NBC interview. “The countries that aren’t cooperating will pay, one way or another.”
Description:
"Donald Trump imposes a 35% tariff on Canadian imports starting August 1, threatens global trading partners with blanket tariffs up to 20%, and demands action on fentanyl. Canada vows to protect its workers as trade tensions explode."