Trump imposes 35% tariff on Canada

U.S. President Donald Trump escalated his trade offensive on Thursday, announcing a sharp increase in tariffs on Canadian imports and hinting at sweeping duties for other global trading partners.

Starting August 1, the U.S. will impose a 35% tariff on Canadian goods, with Trump warning of further increases if Canada retaliates. In a letter released via his social media platform, Trump informed Canadian Prime Minister Mark Carney of the move, citing frustrations over trade imbalances, agricultural barriers, and drug trafficking.

Trump accused Canada of failing to curb the flow of fentanyl into the U.S. and maintaining trade practices that harm American dairy producers and other industries. He framed the trade deficit as a national security risk.

“If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote.

Canadian officials pushed back, saying fentanyl flows from their country are minimal and that border enforcement has been strengthened in recent years.

Trump also revealed plans to impose blanket tariffs of 15% to 20% on most other U.S. trading partners, with few exceptions. “Not everybody has to get a letter. You know that. We’re just setting our tariffs,” Trump said in an interview.

The news has sparked concern in global markets, especially in Europe. “The potential escalation between the EU and the U.S. is a big deal for financial markets,” said Joseph Capurso, head of international economics at the Commonwealth Bank of Australia. “If you get something similar to the U.S.-China trade war, that’s going to be very destabilizing.”

Analysts now watch closely for a potential response from Canada and the EU as fears grow over a broader resurgence in global trade tensions.

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