Trump Threatens Canada With 35% Import Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump has threatened a 35% tariff on Canadian goods, deepening trade tensions between the U.S. and its northern neighbor. He’s also considering doubling tariffs on other countries’ imports, creating uncertainty in global markets. Canada vows to defend its economy as talks continue ahead of an August 1 deadline.
Quick Look: Trump’s Trade Threats
- Trump proposes 35% tariffs on Canadian goods
- Global tariffs may double to 20% or higher
- Canada and U.S. trade talks ongoing before August 1
Trump Threatens 35% Tariff on Canadian Goods, Hints at Doubling Global Trade Duties
Deep Look
President Donald Trump on Thursday threatened to impose a 35% tariff on imports from Canada, escalating a simmering trade dispute with America’s closest neighbor and key trading partner.
In a separate interview with NBC News, Trump also suggested he may double tariffs on goods from other trading partners, signaling a broader global shift in U.S. trade policy.
These latest moves have sparked uncertainty among businesses, investors, and consumers, as Trump’s trade stance continues to fluctuate, sometimes within mere hours.
It remains unclear whether Trump’s proposed 35% tariff would cover all Canadian imports or be limited to specific goods already subject to existing U.S. tariffs. The new tariffs are set to begin August 1, unless a deal is reached.
“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses,” Canadian Prime Minister Mark Carney posted on X. “We will continue to do so as we work towards the revised deadline of August 1.”
Global Tariffs in Trump’s Crosshairs
Trump’s announcement regarding Canada came amid a flurry of letters he’s sent in recent days to nearly two dozen world leaders, notifying them of new tariff rates that could take effect August 1 unless agreements are reached.
In his NBC interview, Trump confirmed that any remaining trading partners who haven’t received letters—or who don’t reach agreements—could face a flat tariff rate. Currently, most goods imported into the U.S. face a 10% tariff, but Trump hinted that this could double.
“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump told NBC.
Canada-U.S. Trade Tensions Grow
Canada remains the top buyer of American exports, purchasing $349 billion worth of goods in 2024, according to U.S. Department of Commerce data. Conversely, Canada shipped $413 billion in goods to the U.S. last year, making it the third-largest source of U.S. imports.
Imposing steep tariffs on Canadian goods risks triggering retaliatory measures, which could hurt American exports and industries ranging from automotive manufacturing to agriculture.
“Canada has long been a reliable partner and trusted friend to the United States. These tariffs will damage both our countries,” said Pierre Poilievre, Canada’s Conservative opposition leader, on X.
Trade relations between Trump and Canada have been rocky for years. Following his re-election, Trump initially threatened a blanket 25% tariff on all Canadian and Mexican goods in November 2024, citing issues like illegal immigration and fentanyl trafficking. However, those tariffs were paused and partially rolled back, with exemptions for goods compliant with the U.S.-Mexico-Canada Agreement (USMCA).
In March, Trump threatened fresh tariffs on Canadian lumber and dairy products, accusing Canada of unfair trade practices, including a roughly 250% tariff on U.S. dairy exports. Despite strong rhetoric, those tariffs never materialized.
Fentanyl a Lingering Issue
Trump again cited fentanyl trafficking as justification for potential tariffs on Canada, although official figures show only a tiny fraction of illegal fentanyl enters the U.S. from the northern border. Of the nearly 22,000 pounds seized in fiscal year 2024, just 43 pounds—or about 0.2%—were confiscated at the Canadian border.
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump said in a letter to Canadian officials.
Canadian leaders pushed back, highlighting new measures to fight drug trafficking.
“We are committed to continuing to work with the United States to save lives and protect communities in both our countries,” Carney said.
With the August 1 tariff deadline looming, businesses on both sides of the border are bracing for possible economic fallout.
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