President Donald Trump plans to impose a 35% tariff on the majority of imports from Canada starting next month, an increase to the 25% levy the president first announced in February.
Trump said the 35% tariff, which go into effect Aug. 1, is necessary because of fentanyl being smuggled into the U.S. through Canada.
“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. Instead of working with the United States, Canada retaliated with its own Tariffs,” Trump wrote on Truth Social.
“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.”
A White House official told the Wall Street Journal that imported goods covered by the United States-Mexico-Canada Agreement were expected to remain exempt, and 10% tariffs on energy and fertilizer were also not set to change.
In fiscal year 2024, U.S. Customs and Border Protection seized 43 pounds of fentanyl at the Canadian border, compared with roughly 21,100 pounds seized at the Mexican border.
The Canadian Border Services Agency seized nearly 18,300 pounds of drugs, including 1.2 pounds of fentanyl, entering Canada from the U.S. in 2024, CBC reported.
Mark Carney, Prime Minister of Canada, said his administration is working to reach a new trade deal with the U.S. before the Aug. 1 deadline.
“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1,” Carney wrote on social media platform X.
“Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries.”
Canada is the second largest trade partner of the U.S. at $57 billion in two-way commerce during May, according to data from the Census Bureau.
Over the past several days, the Trump administration has sent a flurry of letters to dozens of U.S. trade partners informing them that higher import tariffs could kick in if no new trade agreements are reached by Aug. 1.
Trump said he is also placing a 50% tariff on imports of copper starting in August, and is considering a 200% tariff on imported pharmaceutical products later this year.
