Key Points

Trump is imposing a 35% tariff on Canadian imports starting August 1, blaming Canada for insufficient action on fentanyl. He warned of further increases if Canada retaliates, despite evidence most fentanyl enters via Mexico. This move expands his broader trade war, including new tariffs on Japan and South Korea. The fate of USMCA exemptions remains uncertain under the new policy.

Key Points: Trump Imposes 35% Tariff on Canada Over Fentanyl Concerns

  • Trump blames Canada for fentanyl flow despite most entering via Mexico
  • Threatens higher tariffs if Canada retaliates
  • Expands global trade war with new tariffs on Japan and South Korea
  • USMCA exemptions may not apply to new 35% tariff
2 min read

Trump to impose 35 per cent tariff on Canada, starting August 1

Trump announces 35% tariff on Canadian imports starting August 1, citing insufficient action on fentanyl, with potential for further escalation.

"If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter. – Donald Trump"

Washington, July 11

US President Donald Trump announced that a 35 per cent tariff will be placed on all imports from Canada beginning August 1, citing what he described as Canada's failure to curb the flow of fentanyl into the United States sufficiently.

In a letter addressed to Canadian Prime Minister Mark Carney and shared via his social media platform, Trump said the tariff could increase further if Canada responds with retaliatory measures.

He also left the door open for negotiation, stating, “If Canada works with me to stop the flow of fentanyl, we will, perhaps, consider an adjustment to this letter.” He added that the tariffs could be revised upward or downward depending on the evolving relationship between the two countries.

The president's remarks come despite evidence showing that the vast majority of fentanyl trafficked into the United States enters through the southern border with Mexico, not the northern border with Canada.

Trump has broadened his trade war in recent days, setting new tariffs on a number of countries. In addition to Canada, Trump has recently imposed new tariffs on Japan and South Korea, and announced a 50 per cent tariff on imported copper.

In a separate interview with NBC News published Thursday, Trump suggested more countries could soon face blanket tariffs ranging from 15 to 20 per cent, depending on their trade practices and cooperation on security-related matters.

The United States had previously levied a 25 per cent tariff on various Canadian goods, though many items were later exempted under the terms of the 2020 United States-Mexico-Canada Agreement (USMCA). It remains unclear whether those exemptions will remain in effect when the new tariffs begin.

Prime Minister Carney has not yet issued a formal response.

- IANS

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Reader Comments

S
Shreya B
Why is Trump blaming Canada for fentanyl when everyone knows it comes through Mexico? This seems like an excuse to impose more tariffs. The US should focus on its own border security first!
A
Aditya G
Trade wars never benefit anyone in the long run. As an Indian businessman dealing with North American markets, I'm concerned about the ripple effects this will create. Hope our trade ministry is watching closely.
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Priya S
This is so unfair to Canada! They've always been good neighbors to the US. Trump's policies are making America more isolated. India should strengthen trade ties with Canada now - could be a great opportunity for us 🇮🇳🤝🇨🇦
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Karthik V
While I don't support Trump's approach, we must acknowledge the fentanyl crisis is real. Maybe India should take note and strengthen our own drug control measures before we face similar accusations.
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Michael C
As someone working in international trade, I can say these tariffs will disrupt supply chains globally. Indian companies doing business with North America should review their contracts immediately.
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Nisha Z
Trump is using trade as a weapon too casually. This will hurt ordinary Canadians and Americans alike. India should use this as a lesson - we must become more self-reliant in manufacturing.

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