The new rate will go into effect on Aug. 1.
President Donald Trump said on July 10 that he would be imposing a blanket 35 percent tariff on Canadian imports.
In a letter posted to his Truth Social Platform, Trump told Canadian Prime Minister Mark Carney that the new tariff rate would take effect on Aug. 1.
“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.”
Carney had earlier said that the two leaders agreed during the G7 summit in Canada on June 16 to reach a new trade deal within 30 days.
On June 27, Trump said he would end all trade talks with Canada unless Ottawa removes its digital services tax (DST), which imposes a 3 percent levy on revenue tech companies such as Amazon receive from Canadian customers. The tax had been a trade irritant for both the Biden and Trump administrations. Canada announced two days later that it would rescind the DST, with Carney adding that the two countries are back on track to reach a new trade deal by July 21.
In his July 10 letter, Trump pointed to the other trade irritant Washington has with Ottawa, Canada’s dairy supply management system.
“Canada charges extraordinary Tariffs to our Dairy Farmers — up to 400% — and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada,” Trump said.
During the first Trump presidency, Canada had to allow more access to U.S. dairy exporters to secure Washington’s approval for the United States–Mexico–Canada Agreement (USMCA), which replaced NAFTA. Canada’s Parliament recently passed a bill to keep supply management immune from any concessions in future trade negotiations.
By Jacob Burg
