Trump announces 35% tariff on Canadian goods amid trade war
Iran Press TV
Friday, 11 July 2025 3:25 PM
US President Donald Trump has said that the United States will impose a 35% tariff on all Canadian imports starting August 1, escalating a trade dispute with one of America's closest allies during ongoing economic talks.
The announcement, delivered via Trump's social media platform Truth Social on Thursday, sent shockwaves through markets, with US stock futures dipping on the news.
The new tariff level is steeply increased from the 25% rate introduced in February and well above earlier suggestions of 15% to 20% tariffs for countries without trade deals with the US.
The move comes despite active trade talks between Washington and Ottawa, and marks another chapter in Trump's disruptive approach to international relations, one that has increasingly targeted even long-standing partners.
In a letter addressed to Canadian Prime Minister Mark Carney, Trump claimed the tariff is a response to Canada's "failure" to stop the flow of fentanyl into the US, writing: "If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter."
However, Canadian and US government data show that less than 0.1% of fentanyl seized at US borders from 2022 to 2024 came through Canada, with the vast majority entering from Mexico.
Carney, who has positioned himself as a defender of Canadian sovereignty since taking office, responded on X: "We have steadfastly defended our workers and businesses and will continue to do so as we work towards the revised deadline of August 1." He added that Canada has made "vital progress" in combating fentanyl trafficking.
Back in late June, Trump decided to halt trade talks with Canada; however, the Canadian foreign minister acknowledged ongoing "complex" negotiations.
Anita Anand expressed hope earlier on Thursday that a new economic and security agreement could be reached before the July 21 deadline, stressing that "our teams are working extremely hard behind closed doors in a complex negotiation."
Trump also told NBC that new tariffs on the European Union are under consideration. EU negotiator Maroš Šefčovič said talks with Washington remain ongoing, and so far, the bloc has avoided being targeted.
Carney, meanwhile, has been working to reduce Canada's economic reliance on the US, seeking closer ties with the EU and the UK.
He has also publicly rejected Trump's suggestions about annexing Canada, declaring in a May meeting at the White House: "Canada is not for sale - won't be for sale - ever."
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