Trump will apply a 35% tariff on Canada starting August 1
Trump threatened a 35% tariff on Canadian goods and could double what most other nations pay
Trump released a letter sent to Canadian Prime Minister Mark Carney outlining the upcoming tariffs. This week, Trump released letters to more than a dozen countries promising to impose steep tariffs on their imports starting August 1.
The president argued that Canada had not done enough to stem the flow of fentanyl into the United States, even though relatively little fentanyl crosses its northern border each year compared to its southern border.
“If Canada will work with me to stem the flow of fentanyl, we may consider adjusting this letter,” Trump wrote to Carney. “These tariffs could be modified, up or down, depending on our relationship with your country.”
The United States had previously imposed a 25% tariff on Canadian products, although Trump later exempted products covered by the 2020 trade agreement between the United States, Canada, and Mexico.
Trump warned Prime Minister Mark Carney that if his country raises the tariffs in turn, any figure they choose will be added to the 35% announced.
According to his note, fentanyl trafficking is not the only challenge Washington faces with its neighbor. His tariff and non-tariff policies, in his opinion, have caused unsustainable trade deficits for the United States, which pose a "major threat" to both its economy and its national security.
Trump recalled that he initially imposed tariffs on Canada precisely to address the "crisis" that this drug is causing in the United States, and that he attributed it in part to Ottawa's "failure" to stop it.
"Instead of working with the United States, Canada responded with its own tariffs," he criticized in that letter, where he recalled that tariffs are not contemplated for those companies that decide to cross the border and settle in United States territory.
"There will be no tariffs if Canada, or the companies in its country, choose to build or manufacture products within the United States, and in fact, we will make every effort to provide approvals quickly, professionally, and routinely,” Trump’s letter adds.
Trump has promised to continue these tariff threat letters until each trading partner reaches a bilateral trade agreement, after announcing on April 2 an additional global tariff of 10% and another higher one for countries with large trade deficits in goods in his favor, something he described as “reciprocal” when it is not.
On April 9, the date on which these “reciprocal” tariffs went into effect, Washington announced a truce that expired last Wednesday and was extended to August.
The letter sent to Canada comes after Trump and Carney had aimed to reach a resolution to the bilateral trade negotiations to avoid a new round of tariff retaliation, after Trump did not remove his neighbor from the list of tariffs.
Among those that have received similar letters this week are Japan, South Korea, Burma, Laos, Cambodia, Thailand, Serbia, Bangladesh, Indonesia, South Africa, Bosnia and Herzegovina, Tunisia, Kazakhstan, and Malaysia. In the case of Brazil, the 50% tariffs were justified in retaliation for the trial of former President Jair Bolsonaro.

