Canada will face a 35 percent tariff on exports to the United States starting August 1, President Donald Trump has said in a letter to Prime Minister Mark Carney.
"Instead of working with the United States, Canada retaliated with its own Tariffs. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs," Trump said in the letter on Thursday, which he posted on his Truth Social platform.
Trump said there will be no tariffs on Canada if it decides to build or manufacture products within the US, saying that "we will do everything possible to get approvals quickly, professionally, and routinely."
He also warned Canada against taking any step to increase its counter tariffs against his latest levies on the country.
"If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge," he warned.
Fentanyl crisis
Trump cited the flow of fentanyl as the reason for launching his trade war with neighbouring Canada.
"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 with your country," he said.
"You will never be disappointed with the United States of America."
According to data from Centers for Disease Control and Prevention, there was a 26 percent drop in 2024 in deaths from drug overdose and opioids, primarily fentanyl.
Trump's move was the latest of more than 20 such letters issued by him since Monday, after he repeatedly threatened to simply decide a tariff rate for countries as negotiations continue over his "reciprocal" tariffs.
