President Donald Trump (l) and Canadian Prime Minister Mark Carney|Gage Skidmore; CarletonU, Faculty of Public and Global Affairs|CC BY-SA 2.0; CC BY 3.0
The US will impose a 35% tariff on Canadian goods starting August 1, President Donald Trump announced Thursday in a letter to Canadian Prime Minister Mark Carney.
The move strains the US-Canada relations, already tense over previous tariffs.
Trump claims the new rate is a response to fentanyl trafficking, though US data shows less than 1% of fentanyl seized in 2024 came from Canada.
Canada exports over 75% of its goods to the US, making it highly exposed to US trade actions.
Trump’s announcement followed his February 25% tariff, with exemptions under the United States-Mexico-Canada Agreement (USMCA). Energy and potash imports faced 10% rates.
Trump did not clarify whether USMCA exemptions would continue. Carney vowed to defend Canadian workers and continue talks.