US President Donald Trump has announced that the United States will impose a 35% tariff on imports from Canada starting August 1, 2025. This decision comes as part of Trump’s broader trade war strategy, which aims to renegotiate trade deals and reduce the US trade deficit. Trump justified the tariff by citing Canada’s alleged failure to curb the flow of fentanyl into the US and its prior retaliatory tariffs against American products.
In a letter to Canadian Prime Minister Mark Carney, Trump stated, “Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States.” He further warned that this rate could increase if Canada retaliates, emphasizing that “whatever the number you choose to raise them by, will be added onto the 35%”.
Trump’s tariff announcement is not limited to Canada. He plans to impose blanket tariffs of 15% or 20% on most other trade partners, including allies like Japan and South Korea. In an interview with NBC News, Trump said, “Not everybody has to get a letter. You know that. We’re just setting our tariffs… We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now.” This move is expected to impact over 20 countries, with Trump having already sent letters to numerous nations outlining new tariff rates.
The tariffs have sparked concerns about the potential impact on global trade and economies. Canada and the US are currently engaged in trade negotiations, aiming to reach a deal by July 21. However, the latest tariff threat seems to put this deadline in jeopardy. Canadian officials are working to find ways to satisfy Trump’s demands and put the USMCA (United States-Mexico-Canada Agreement) back on track.
Other countries affected by Trump’s tariffs are also taking action. Myanmar has pleaded with Trump to reduce its 40% tariff rate, with Senior General Min Aung Hlaing expressing willingness to send a negotiation team to Washington. Meanwhile, Philippine President Ferdinand Marcos Jr will meet Trump in Washington DC to discuss the 20% tariffs imposed on Manila and mutual defense issues.
The trade tensions come as Trump continues to broaden his trade war, imposing new tariffs on various countries. The US has already imposed 25% tariffs on Canadian and Mexican products, with exemptions for goods entering under the USMCA. Potash, used as fertilizer, received a lower rate. Trump’s trade policies aim to reduce the US trade deficit and promote American economic interests, but their impact on global trade and economies remains uncertain.