Trump Imposes 35% Tariff on Canada, Plans Broader Trade Penalties
Trump imposes 35% tariff on Canadian imports, escalating trade tensions with America’s second-largest trading partner. The new tariff takes effect on August 1 and raises the current 25% rate to 35%. Donald Trump, the former president, said that the rate could go up even more if Canada strikes back. He sent this news to Canadian Prime Minister Mark Carney through his social media account. Trump said the move was part of his larger plan to protect the economy of the United States.
Mark Carney responded on X (formerly Twitter). He said Canada will continue defending its workers and industries while trade talks with the U.S. continue. The timing is critical—Carney hoped to finalize a new trade and security deal with Washington by July 21.
Tariffs Expand as Trump Targets Global Partners
Trump hinted that there might be more tariffs than just the 35% tariff on Canada. He said in a recent NBC interview that other countries would have to pay tariffs of 15% to 20% on everything. Trump said, “Not everyone needs a letter.” “We’ll just say that all the other countries will pay.”
Goods that are covered by the USMCA won’t change for now. A 10% tariff still applies to imports of energy and fertiliser. But a high-ranking official said Trump might look at those rates again later.
Trump Points to Fentanyl and Trade Barriers
In his letter, Trump said that Canada helped drug traffickers by protecting its markets with unfair trade rules. He said that Canadian policies hurt American dairy farmers and make the trade deficit bigger. Trump said these problems put the economy and national security of the United States at risk.
Trump wrote, “If Canada helps me stop the flow of fentanyl, we might think about changing the tariffs.” Canadian officials denied the claim, but they said they are still committed to working with the U.S. on border security and public health.
Global Fallout and Market Concerns
Trump’s aggressive trade policy now stretches far beyond North America. He has already imposed a 50% tariff on copper. More tariffs, including on the European Union, are expected soon. Japan, South Korea, Myanmar, and the Philippines are also preparing for negotiations.
As Trump increases pressure, investors and analysts fear a wider trade war. His 35% tariff on Canada may trigger global retaliation, creating more uncertainty in financial markets.
