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Home > World > Donald Trump Threatens Canada With 35% Tariffs: Will Fentanyl Fight Deepen The US-Canada Trade War?

Donald Trump Threatens Canada With 35% Tariffs: Will Fentanyl Fight Deepen The US-Canada Trade War?

US President Donald Trump has threatened to slap 35% tariffs on Canadian imports starting August 1, unless Canada takes steps to stop the flow of fentanyl into the United States. In a letter to Canadian Prime Minister Mark Carney, which Trump shared on social media, he linked the drug crisis to wider trade grievances, including dairy tariffs and economic imbalance. The warning comes as both nations face a looming deadline to finalize a new economic and security pact.

Published By: Zubair Amin
Last updated: July 11, 2025 07:43:20 IST

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Donald Trump Tariffs Canada: US President Donnad Trump wrote a letter to Canadian Prime Minister Mark Carney which he posted on social media on Thursday night, threatened to impose 35% tariffs on Canadian imports starting August 1, unless Canada takes action to curb the flow of fentanyl into the United States.

Donald Trump Tariffs Canada: Fentanyl, Trade at the Center of Dispute

Trump stated that if Canada works to stop the flow of fentanyl into the U.S., he may consider adjusting the proposed tariffs.
“I must mention the flow of Fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers, which cause unsustainable Trade Deficits against the United States,” the letter read.

The president criticized Canada’s supply management in the dairy sector, repeating his disputed claim that Canada imposes 400 tariffs on American dairy farmers. He argued that the ongoing trade deficit with Canada poses a threat to both the U.S. economy and national security.

Also Read: Tariff Trouble: India, US Race to Seal Trade Deal Before Deadline, Indian Trade Delegation To Visit Washington

Donald Trump Tariffs Canada Timeline

The two countries had earlier committed to negotiating a new economic and security agreement, setting a July 21 deadline to reach a deal.

In March, Trump imposed tariffs on Canadian imports, including 25% duties and a lower 10% levy on energy and potash. However, he later rolled back some of these tariffs on goods compliant with the Canada-US-Mexico Agreement (CUSMA). It remains unclear whether Trump’s latest tariff threats would exempt products covered under this trilateral trade pact.

The latest proposed measures include additional tariffs on steel, aluminum, and automobiles, along with plans to introduce new duties on copper, all set to take effect on August 1.

Donald Trump Warns Canada of Further Tariffs If It Retaliates

The letter also noted that Canada had responded to the earlier US tariffs with retaliatory duties targeting a range of American products such as orange juice, motorcycles, clothing, shoes, coffee, cosmetics, and alcohol.

Trump warned that any increase in Canadian tariffs would result in a proportional increase in the proposed US tariffs.
“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 (per cent) that we charge,” Trump wrote.

Also Read: ‘Brazil Won’t Accept Tutelage’: Luiz Inácio Lula da Silva Hits Back After Donald Trump’s 50% Tariff Threat

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