President Donald Trump announced Wednesday that all imports from Canada will face a 35% tariff starting August 1. He called the move a direct response to Canada’s inaction on fentanyl trafficking and its retaliatory tariffs against the U.S.
In a letter addressed to Canadian Prime Minister Mark Carney, Trump wrote, “It is a Great Honor for me to send you this letter.” He added, “It demonstrates the strength and commitment of our Trading Relationship.”
Trump made it clear that the tariffs are not just economic tools, but part of a broader national security strategy. “The United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis,” he wrote. “This is caused, in part, by Canada’s failure to stop the drugs from pouring into our Country.”
Instead of cooperating, Trump said, Canada pushed back. “Instead of working with the United States, Canada retaliated with its own Tariffs,” he noted. “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.”
Trump issued a warning about any efforts to sidestep the new rules. “Goods transshipped to evade this higher Tariff will be subject to that higher Tariff,” he wrote. He added that “if Canada retaliates,” the rate would increase further.
He offered an olive branch to companies willing to invest in the U.S. “Canadian companies that build or manufacture product within the United States will not be subject to tariffs,” Trump said. “We will do everything possible to get approvals quickly, professionally, and routinely — In other words, in a matter of weeks.”
Trump also tied the tariff issue to Canada’s restrictive dairy policies. “Canada charges extraordinary Tariffs to our Dairy Farmers — up to 400%,” he wrote. “And that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada.”
He made clear the penalties could shift depending on future cooperation. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” he said. “These Tariffs may be modified, upward or downward, depending on our relationship with your Country.”
Trump also spoke on the broader tariff strategy during a Meet the Press interview. “We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%,” he told NBC’s Kristen Welker. “We’ll work that out now.”
He defended the effectiveness of tariffs as a policy tool. “I think the tariffs have been very well-received,” Trump said. “The stock market hit a new high today.”
Canadian officials are already reacting to Trump’s move. Prime Minister Carney called the tariffs “unjustified.” Industry Minister Mélanie Joly said, “Every day we are in a tariff war, and we are defending ourselves.”
Trump confirmed that at least 23 countries have been notified about incoming tariffs. He said not every nation needs a formal warning. “Not everybody has to get a letter,” Trump told NBC. “You know that. We’re just setting our tariffs.”
A separate 50% tariff on copper imports will also take effect next month. Trump hinted more blanket tariffs on all imports could be coming soon. “Whether it’s 20% or 15%,” he said, “we’re going to set the number.”
With U.S.–Canada trade relations at a boiling point, Trump closed his letter with one more message to Ottawa. “You will never be disappointed with The United States of America,” he wrote. “Thank you for your attention to this matter!”