Trump threatens to impose 35% tariff on goods from Canada

President Trump announced Thursday plans for a 35% tariff on goods imported from Canada that would take effect on Aug. 1.Why it matters: The latest twist in the off-on trade war with Canada comes after the key trading partner rescinded its digital services tax to advance broader trade negotiations with the U.S. as it works toward an economic deal ahead of a July 21 deadline.Trump has taken an openly aggressive position with Canada of late, threatening to call off talks altogether over the digital services tax, and now setting a new levy while the two sides are in the middle of negotiations.Driving the news: "Instead of working with the United States, Canada retaliated with its own Tariffs," Trump wrote in a letter to Canadian Prime Minister Mark Carney that he shared on Truth Social."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," said Trump in the letter that accused Canadian officials of not doing enough to stop the flow of fentanyl across the border."[T]here will be no tariff if Canada, or companies within your country, decide to manufacture product within the United States," he added."If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge."By the numbers: Stock futures plunged after Trump posted the Canada letter, with the S&P 500 indicated almost 0.6% lower late Thursday."The US dollar is climbing against most of its major peers and volatility assumptions are ratcheting back up as traders brace for more turbulence ahead," wrote Karl Schamotta, chief market strategist at Corpay, in a note late Thursday.Thought bubble: A stable economy and strong financial markets appear to have emboldened the president to push harder on his natural preference for tariffs, as Axios' Neil Irwin noted this week.State of play: Canada is the most significant trading partner of the more than 20 countries to receive a letter this week from Trump threatening tariffs.The North American neighbor was the third-biggest source of U.S. goods imports last year ($413 billion) and the top destination for exported United States goods ($349 billion), per Census Bureau data."When taking into account both goods and services trade, Canada was the second-largest U.S. trade partner in 2024," according to a congressional report.Of note: Trump has repeatedly blamed Canadian officials for allowing fentanyl to cross the border into the U.S. even as data shows that less than 1% of fentanyl seized in the United States last year entered through Canada.Meanwhile, Canadian officials have blamed the U.S. for a flood of illegal guns into Canada.Go deeper: Global trade (back) in limboEditor's note: This article has been updated with new details throughout.

Comments

World news

Independent

Trump asks the President of Liberia, where English is the official language, where he learned to speak it ‘so beautifully’

about 1 hour ago

Who is Francesca Albanese – Italian human rights lawyer sanctioned by US?

Independent

Comments

Similar News

Trump asks the President of Liberia, where English is the official language, where he learned to speak it ‘so beautifully’

Trump to host Philippine president to discuss trade and security in Asia

Trump plans to hit Canada with 35% tariff - while warning of blanket hike for other countries

The return of ‘tariff man’: the week Trump revived the global trade war

Trump is sowing confusion in the markets

Trump plans to tour Texas flood damage as the scope of the disaster tests his pledge to shutter FEMA

Ukraine-Russia war latest: Trump says he struck deal to supply weapons to Ukraine through Nato

Trump to tour flood zone Friday as he touts ties to deep-red Texas

Former Trump lawyer claims he knows Epstein client list names: ‘But I’m bound by confidentiality’

Why is the media paying millions to Trump? – podcast

Donald Trump takes another swipe at Canada with alarming new threat

Asia is reeling from Trump's tariff salvo – is anyone winning?

Trump threatens 35% tariff on Canadian goods and says he may double what other nations are charged

The FBI is using lie detectors to test employee loyalty to Trump’s appointees

US will impose 35% blanket tariffs on Canadian imports, Trump says in letter

Rubio in bind as he seeks to reassure Asia, even as region faces punishing Trump tariffs

Freed Mahmoud Khalil seeks $20 million in damages from Trump admin

Donald Trump branded 'condescending' after bizarre remarks to Liberia’s President

Trump threatens 35% tariffs on Canadian goods

Trump threatens new 35% tariff on Canadian goods, effective Aug. 1

World news

Trump asks the President of Liberia, where English is the official language, where he learned to speak it ‘so beautifully’

Who is Francesca Albanese – Italian human rights lawyer sanctioned by US?

The anniversary of Srebrenica is a moment to remember that looking away is not an option

I saw my first dead body aged 8 – it wasn’t the last

Srebrenica massacre: ‘I am one of the lucky ones because I found two of my son’s bones’

Man Utd Women have been left to rot by Sir Jim Ratcliffe

The best new books out in paperback in July 2025

What health experts eat to stay cool (and one is straight from the BBQ)

I love dogs – but there is no place for them in restaurants

UK getaways with wild swimming and natural pools

Steph McGovern: ‘I didn’t feel threatened by my stalker – maybe that was naive’

It’s time for Iga Swiatek to become a superstar

Artist, psychologist, Wimbledon finalist – Amanda Anisimova has it all

My Lions dream team – the best XV players of the modern era

The creative Victorian spa town with majestic hill walks and antiquarian bookshop

Justice Jackson on writing dissents: "I'm not afraid to use my voice"

Cuban women embrace extravagant nail art despite economic hardships

Japan urges China to stop flying fighter jets too close to Japanese military aircraft

Trump to host Philippine president to discuss trade and security in Asia

Trump plans to hit Canada with 35% tariff - while warning of blanket hike for other countries

Kurdish PKK to lay down arms in big step towards ending Turkey conflict

Justin Bieber releases surprise new album

Watch: The story of Jane Birkin's £7.4m handbag

European allies step up plans for Ukraine stabilization, with U.S. attending meeting

Friday Briefing: Iran Has Some Uranium Left, Israel Says

What to Know About the Rare Earths Mining Boom in Myanmar

Rare Earths Mining in Myanmar Is Polluting Thailand’s Kok River

Missing teen surfer ‘miraculously’ found alive on remote Australian island

Texas floods latest: Death toll rises to 121 as Camp Mystic cabins ‘found to be in extremely hazardous’ flood zone

Trump to tour flood zone Friday as he touts ties to deep-red Texas

Trump plans to tour Texas flood damage as the scope of the disaster tests his pledge to shutter FEMA

Ukraine-Russia war latest: Trump says he struck deal to supply weapons to Ukraine through Nato

Former Trump lawyer claims he knows Epstein client list names: ‘But I’m bound by confidentiality’

Capability of RAF’s F-35 jets a ‘disappointing return’ on £11bn cost, report says

Our £550 a month mortgage is ending in less than a year – our costs could double

Donald Trump takes another swipe at Canada with alarming new threat

Texas officials face questions about emergency alerts during deadly floods

Asia is reeling from Trump's tariff salvo – is anyone winning?

Rosenberg: Putin determined to press on despite threat of tougher sanctions

Row over language turns violent in India's richest state

In the country with the world's lowest birth rate, fertility clinics are booming

War crimes are likely being committed in Darfur, ICC finds

Trump threatens 35% tariff on Canadian goods and says he may double what other nations are charged

The FBI is using lie detectors to test employee loyalty to Trump’s appointees

Billie Eilish, The O2 review: a dazzling, rule-breaking masterclass

Governors say FEMA is no longer reliable for disaster aid

Freed Mahmoud Khalil seeks $20 million in damages from Trump admin