Fri, 11 Jul 2025

Fri, 11 Jul 2025 Trump threatens 35% tariffs on Canadian goods

Trump also threatened blanket tariffs of 15% or 20% on most trade partners, and said he will soon announce new tariffs on the EU.
Canadian Prime Minister Mark Carney responded by stating that his government will continue to protect Canadian workers and businesses as they work towards the revised August deadline. The US has already imposed a 25% tariff on all Canadian imports, with an exemption for goods complying with the North American free trade agreement. However, it is unclear if the latest tariffs threat would apply to these exempted goods. Trump's letter stated that the 35% tariffs are separate from sector-specific levies and can be adjusted depending on Canada's cooperation in stopping fentanyl flow into the US. He also tied the tariffs to existing Canadian levies on US dairy farmers and the trade deficit between the two countries. In response, Carney said that Canada has made significant progress in combating fentanyl smuggling and is committed to working with the US to protect communities in both countries. The two countries have been engaged in intense talks to reach a new trade and security deal, with a self-imposed deadline of August 21. If no agreement is reached by then, Canada has threatened to impose more counter-tariffs on the US.
  >>