Washington. Canada will face a 35 percent tariff on its exports to the United States starting August 1, U.S. President Donald Trump announced Thursday in a letter to Canadian Prime Minister Mark Carney.
However, Carney assured that his country will continue the"complicated negotiations" with the United States.
Trump accused the neighboring country's government of retaliating"rather than cooperating" when Washington imposed 25 percent tariffs on Canadian imports in early February—as it did with Mexico and 10 percent on those from China—citing the "major threat of illegal aliens and deadly drugs," referring to fentanyl trafficking.
“Instead of collaborating with the United States, Canada retaliated with its own tariffs,” Trump charged. “Beginning August 1, 2025, we will charge Canada a 35 percent tariff on Canadian products shipped to the United States, in addition to all sectoral tariffs,” he said in the letter, published on his Truth Social platform.
“If for some reason they decide to increase their tariffs, then the amount they choose to increase will be added to the 35 percent we charge.”
Trump also called Canada"a very difficult country to trade with," justifying the measure by citing "many tariff and non-tariff policies and trade barriers, which cause unsustainable trade deficits against the United States."
The US president stated that the digital services tax on US technology companies "constitutes a direct and blatant attack."
He also stated that "Canada applies extraordinary tariffs on our milk producers, of up to 400 percent, and that's assuming our milk producers have access to sell their products to the Canadian population."
However, Trump expressed openness to changing the tax"up or down" if Ottawa "works with me to stop the flow of fentanyl."
The letter also stated that "there will be no tariffs if Canada or Canadian companies choose to build or manufacture products within the United States," adding that U.S. authorities will do"everything possible to" authorize the relocation of such operations "in a prompt, professional, and routine manner." "In other words, within weeks."