Trump Raises Tariffs On Canada, Threatens More Over Fentanyl Crisis

Canada became the latest country to be slapped with increased tariffs by the Trump administration on Thursday.

Starting August 1, the U.S. will impose a 35% tariff on its northern neighbor, President Donald Trump announced on his Truth Social platform on Thursday. Trump cited the trade deficit — which he called a threat to the U.S. economy and national security — as well as Canada’s role in fentanyl trafficking as reasons for the levies.

In February, Trump announced his first round of tariffs on Canada, as well as China and Mexico, to pressure them to do more to combat the flow of fentanyl into the U.S., which claimed the lives of over 76,000 Americans in 2023. On Thursday, Trump claimed Canada has failed to take sufficient action.

“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 in the letter to Canadian Prime Minister Mark Carney.

The new 35% rate is an increase from the 25% levy that was announced in February.

“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,” Trump added.

Canada was the top destination for U.S. exports in 2024, purchasing $349.4 billion worth of American goods. Meanwhile, the value of Canadian goods imported by the U.S. totaled $412.7 billion, resulting in a trade deficit of $63.3 billion.

“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 X following Trump’s announcement, adding that Canada has “made vital progress to stop the scourge of fentanyl in North America.”

The Trump administration has warned it would apply steep new tariffs on countries that fail to negotiate a trade deal with the U.S. by the Aug. 1 deadline.

In recent weeks, Trump has threatened increased tariffs on major trading partners, including a 50% rate on South Korea and Japan. So far, the president has announced trade agreements with the U.K. and Vietnam, and a temporary deal with China.

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