U.S. President Donald Trump has officially raised tariffs on Canadian imports to 35%, following through on his threats to penalize Canada for what he claims is a failure to stop fentanyl and illicit drug trafficking across the northern border.
Effective Friday, August 1, this increase comes via an executive order signed Thursday, escalating the existing 25% tariff set in March. The White House says this move is meant to pressure Canada into tougher drug enforcement and border security efforts.
While Canadian exports covered under the Canada-U.S.-Mexico Agreement (CUSMA) remain exempt, Trump’s administration warns that failure to reach a broader trade deal could see more sectors hit with additional levies.
🇺🇸 Global Tariff Shakeup: Dozens of Countries Affected
In a second executive order, Trump imposed broad tariffs on 17 major U.S. trading partners, including Japan, Taiwan, and the European Union, with new rates ranging from 15% to 41%. Canada was hit with the maximum 35%, alongside targeted duties on steel and aluminum — a category where it is the U.S.'s largest supplier.
Meanwhile, Mexico was granted a 90-day reprieve, following a direct conversation between Trump and Mexican President Claudia Sheinbaum.
🇨🇦 Canadian Officials, Politicians React Swiftly
Canadian Prime Minister Mark Carney has not confirmed direct communication with Trump, but Canadian negotiators are currently in Washington, quietly working behind the scenes. When asked about Canada's plan to recognize Palestinian statehood in September, Trump said it’s “not a deal breaker” for trade talks.
Prominent Canadian leaders have weighed in:
Pierre Poilievre, Conservative Leader: Called the tariffs “unjustified,” demanding a return to zero tariffs across key industries — steel, aluminum, autos, energy, and agriculture.
Ontario Premier Doug Ford urged Ottawa to retaliate with 50% tariffs on U.S. steel and aluminum.
Lana Payne, president of Unifor, said the tariffs jeopardize tens of thousands of jobs: “This is the fight of our lives.”
💬 White House Says Canada Must Act or Face the Consequences
White House Press Secretary Karoline Leavitt hinted Thursday that unless last-minute deals are reached, the full slate of tariffs will take effect at midnight.
Trump’s Commerce Secretary Howard Lutnick reinforced that the president is unlikely to back down, noting that Canada’s retaliation has made it a particular focus of the administration's trade crackdown.
“I just don’t see the president stepping off the gas,” Lutnick said in an interview with Fox Business.
⚠️ What This Means for You
This escalating trade conflict could:
Increase prices of Canadian goods in the U.S., including automobiles, softwood lumber, and food products.
Trigger job losses and production cuts across Canadian industries.
Prompt consumer backlash in both countries, with some Canadians already boycotting U.S. liquor and consumer goods.
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