Trump Imposes 35% Tariff On Canadian Goods; Threatens More In Case of Retaliation

The United States will impose a 35 per cent tariff on imports of goods from Canada, US President Donald Trump announced in a post shared on his social media account, Truth Social, on Thursday.

In a letter, Trump has informed Canadian Prime Minister Mark Carney about the new tariffs which will come into effect from August 1. As Canada failed to stop fentanyl from entering the US, the US President has come up with a new tariff policy, he said.

In the letter, Trump wrote, "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. 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."

"Goods transshipped to evade this higher Tariff will be subject to that higher Tariff. As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely-In other words, in a matter of weeks," he added.

In the letter, Trump threatened to increase the tariff rate by the same amount if Canada decides to increase their tariffs on importing American products. He also targeted Canada's tariffs on US dairy exports and called the trade deficit a major threat to the US economy and national security.

Trump wrote, "I must mention that the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States. 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. The Trade Deficit is a major threat to our Economy and, indeed, our National Security."

"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. You will never be disappointed with The United States of America," he added.

Trump Imposes 50% Tariff On Brazil

Meanwhile, the US President has already announced a 50 per cent tariff on imports from Brazil, starting August 1. He has called the trial of former Brazilian President Jair Bolsonaro a "witch hunt", adding that the "trial should not take place."

Also, seven countries Sri Lanka, Algeria, Iraq, Libya, the Philippines, Moldova and Brunei have been imposed a fresh round of tariffs on imports which will also into effect on August 1.

In a post shared on his social media platform Truth Social, Trump stated, "As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 - No extensions will be granted. Thank you for your attention to this matter!"

The US President, on Monday, shared letters sent by his administration to 14 countries, informing them of the reciprocal tariffs that will take effect from August 1. He sent letters to leaders of Japan, South Korea, Malaysia, Kazakhstan, South Africa, Myanmar, Laos, Thailand, Bangladesh, Indonesia, Tunisia, Bosnia and Herzegovina, Serbia and Cambodia.

With inputs from ANI