US President Donald Trump and Canadian Prime Minister Mark Carney speak in a photo of his family held at the G7 Summit in Kananascus, Alberta, Canada on June 16, 2025.
Amber Bracken | Reuters
US President Donald Trump complained on Thursday that tariffs on Canadian imports increased to 35%, which came into effect on August 1, with Ottawa retaliating with his duties against Washington.
“Instead of working with the US, Canada retaliated with its own tariffs,” Trump told Canadian Prime Minister Mark Carney in a letter on the True Society.
He attributed fentanyl as the reason for that speed of the letter as follows:
According to U.S. Customs and Border Protection, an additional 58 pounds have been confiscated so far this year, and a total of 43 pounds of drugs were seized at the northern border in 2024.
In response to Trump’s announcement, Carney said in a post on X that “Canada has made significant progress in stopping the fentanyl tragedy in North America. We are committed to continuing to work with the United States to save lives and protect our communities in both countries.”
“The Canadian government has been a solid advocate for workers and businesses and will continue to work towards the revised deadline of August 1st.”
If Canada retaliates, the 35% tariff will be separated separately from all sectors’ tariffs, Trump said. Canada is subject to a 50% tariff on Trump and a 25% tariff on automobiles on steel and aluminum imports, and has faced a 50% collection on copper shipments since August 1st.
Other imports from Canada to the US now attract the 25% collection Trump imposed earlier this year for the country’s suspected role in the fentanyl flow, and are exempt from those complying with the US-Mexico-Canada agreement. Energy imports from Canada are subject to a low 10% collection.
“If we decide for any reason to raise tariffs, whatever the number we choose, it will be added to the 35% we charge,” Trump said Thursday. “The good things introduced to avoid this higher tariff will be subject to that higher tariff.”
Trump has shown that future tariff rates will depend on how Washington and Ottawa lie, but said his country faces challenges from Canada beyond fentanyl.
“(Canada) has many tariffs and non-tariffs, policies, and trade barriers that create an unsustainable trade deficit against the United States… Trade deficits are a major threat to our economy and, in fact, our national security!”
According to a statement from the Treasury Canada, the letter came after the agreement reached to resume trade talks on June 29 and addressed the issue of blocking the transaction by July 21.
Trump had threatened to end all trade debates with Canada, one of its biggest trading partners, over Ottawa’s “digital services tax” on American companies. Canada has withdrawn its taxes to resume trade talks with Washington.
In response to Trump’s obligations, Ottawa imposed a 25% tariff on non-USMCA complaint vehicles from the United States, and also imposed a list of US exports, including steel, aluminum, computers, apparel and food earlier this year. Canada said in March it would remain “until the US eliminates tariffs on Canadian steel and aluminum products.”
US total commodity trade with Canada was $761.8 billion in 2024, with Washington’s deficit reaching $62 billion last year, according to US census data. In the first five months of this year, the US deficit in commodity trade with Canada rose 9.8% year-on-year to $25.6 billion.
Separately, Trump told NBC News on Thursday that he intends to impose 15% or 20% blanket tariffs on most trading partners, starting from the current 10%.
