President Donald Trump is threatening to impose an additional tariff of 35% on Canadian goods on Aug. 1, after accusing the U.S. neighbor to the north of failing to stop the flow of fentanyl into the country and instead retaliating with its own tariffs.
In a letter to Canadian Prime Minister Mark Carney on Thursday that Trump posted on Truth Social, he said it was a great honor to send a letter demonstrating the strength and commitment of the U.S. and Canada’s trading relationship. But he also pointed to a relationship gone sour, stating that the U.S. has agreed to continue working together, despite Canada imposing tariffs against the U.S.
"As you will recall, the United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our Country," Trump wrote. "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.
Any goods shipped in a way that evades the 35% tariff, Trump said, will be subject to the higher tariff.
"As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely – In other words, in a matter of weeks," the president said.