Trump Slaps Canada With Shocking 35% Tariff, Escalating Cross-Border Trade War

U.S. President Donald Trump has stunned markets by announcing a sweeping 35% tariff on Canadian imports, effective August 1 — a dramatic move that threatens to upend trade just days before a crucial deadline for a new agreement.

The surprise announcement came via a letter published on Trump’s Truth Social platform, where he also threatened to unleash broad tariffs of 15% or 20% on many other U.S. trading partners.

Canadian Prime Minister Mark Carney quickly pushed back, vowing his government would defend Canadian workers and industries as the deadline looms.

“We’re prepared to protect Canadian jobs and businesses as these negotiations enter their final phase,” Carney said in a statement.

Trump’s tough stance isn’t limited to Canada. The White House has fired off more than 20 similar tariff threats to U.S. allies worldwide this week. Trump also signaled that the European Union is next in line for new tariffs, all potentially kicking in on August 1.

Some Canadian products are already subject to a 25% tariff, and the country continues to feel the pinch from previous Trump-era tariffs on steel, aluminum, and automobiles. While certain goods remain temporarily shielded by North American free trade agreements, it’s unclear whether the latest threat will sweep those products into its net.

The White House has also imposed a global 50% tariff on steel and aluminum and slapped a 25% tariff on all foreign-made cars and trucks. Last month, Trump unveiled a hefty 50% tariff on copper imports, set to take effect soon.

With roughly 75% of Canada’s exports bound for the U.S.—and with Canada serving as a key automotive and metals supplier—these escalating tariffs could inflict significant damage on vital sectors of the Canadian economy. Trump’s 35% measure, he emphasized, is separate from the existing industry-specific penalties.

“There will be no tariff if Canada, or companies within your country, decide to build or manufacture products within the United States,” Trump declared in his letter.

The president tied the tariffs not only to ongoing trade disputes but also to Canada’s alleged failure to halt fentanyl shipments to the U.S. and what he called unfair duties on American dairy exports.

“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter. These tariffs may be modified, upward or downward, depending on our relationship,” Trump warned.

In previous comments, Trump has accused Canada and Mexico of enabling both illegal immigration and the trafficking of fentanyl into the U.S.

Prime Minister Carney, responding on X, pointed to Canada’s “essential progress” in combating fentanyl and pledged continued cooperation with the U.S. to keep North American communities safe.

U.S. Customs and Border Protection data, however, shows only about 0.2% of seized fentanyl enters the U.S. through the Canadian border, with the overwhelming majority intercepted at the U.S.-Mexico line.

Earlier this year, Ottawa boosted border security funding and named a “fentanyl czar” in direct response to American complaints.