President Donald J. Trump issued a direct warning to Canadian Prime Minister Mark Carney in a newly released letter, threatening a 35 percent tariff on Canadian imports starting August 1, citing what he describes as Canada’s role in fueling America’s fentanyl crisis and longstanding trade imbalances.
The letter, posted on Truth Social, outlines Trump’s objections to Canada’s trade actions and its role in the U.S. fentanyl crisis. He criticized Canada’s retaliatory tariffs and asserted that Canadian inaction on fentanyl justified U.S. tariffs. “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,” he wrote.
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Instead of cooperating, Trump said, Canada responded with its own tariffs, prompting his administration’s escalation.
“Starting August 1, 2025, we will charge Canada a Tariff of 35 percent on Canadian products sent into the United States, separate from all Sectoral Tariffs,” Trump stated. He added that any attempts to evade the tariff by transshipping goods through third countries “will be subject to that higher Tariff.”
Trump pointed to not only the fentanyl issue but also Canada’s trade policies as justification for the tariff increase, specifically highlighting high tariffs on U.S. dairy. “Canada charges extraordinary Tariffs to our Dairy Farmers, up to 400 percent, and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada,” he observed.
Trump also offered a path toward de-escalation. If Canada or its companies choose to build or manufacture products in the United States, Trump emphasized, there would be no tariff, and the United States would work to process approvals quickly and routinely.“In fact, we will do everything possible to get approvals quickly, professionally, and routinely. In other words, in a matter of weeks,” he promised.
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In a final warning, Trump cautioned Carney that any additional Canadian tariffs would be matched by increases on top of the 35 percent rate. “Whatever the number you choose to raise them by, will be added onto the 35 percent that we charge,” he remarked.
The letter concluded with Trump suggesting the tariffs could change depending on Canada’s cooperation: “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.”
The letter reflects the Trump administration’s ongoing international tariff strategy.
On July 9, Trump shared letters to the leaders of Algeria, Brunei, Iraq, Libya, Moldova, the Philippines, and Sri Lanka, informing them of new tariffs ranging from 20 to 30 percent on most goods exported to the United States. The tariffs, effective August 1, are aimed at correcting trade deficits. Trump warned that any retaliatory tariffs would be matched with equal increases and noted that companies in those countries could avoid the tariffs entirely by manufacturing in the United States.
Earlier in the week, on July 7, Trump announced similar tariff rates on South Africa, Laos, Myanmar, Malaysia, and Kazakhstan. He had also issued earlier notices to Japan and South Korea, whose exports will face 25 percent tariffs starting August 1. The letters emphasized that companies choosing to build or manufacture in the United States would not face tariffs and would receive expedited approvals ‘within weeks.’
Trump’s letter to Prime Minister Carney follows recent trade tensions sparked by Ottawa’s digital services tax on U.S. tech companies like Amazon, Google, and Meta, which led Trump to terminate trade talks at the end of June and prompted Canada to rescind the tax on June 30 in an effort to restart negotiations.
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