Trump Slaps 35% Tariff on Canadian Exports Amid Ongoing Trade Tensions

In a sharp escalation of trade tensions, U.S. President Donald Trump on Thursday announced a 35% tariff on Canadian exports to the United States, effective August 1.

The move was conveyed in a formal letter to Canadian Prime Minister Mark Carney, marking the latest in a series of over 20 such notices Trump has issued since Monday as part of his widening trade offensive.

The announcement comes at a critical juncture, with U.S.-Canada negotiations underway to resolve lingering trade disputes ahead of a July 21 deadline. The move has cast doubt over the talks, which aim to safeguard the United States-Mexico-Canada Agreement (USMCA) — the successor to NAFTA — from further disruption.

Canada and Mexico have been scrambling to placate Washington’s demands, hoping to stabilize a deal that was renegotiated under Trump’s first term and formally replaced NAFTA in July 2020. Though a review of USMCA wasn’t due until next year, Trump has fast-tracked confrontations by reviving his aggressive trade stance since returning to office in January.

Both Canadian and Mexican goods were previously targeted by 25% tariffs, though Canadian energy exports received a partial reprieve. Trump justified the tariffs by accusing both neighbors of insufficient action on illegal immigration and drug trafficking.

While some exemptions were later granted under the USMCA framework — notably for potash, a key fertilizer export — Thursday’s move threatens broader economic impacts, despite recent efforts to mend diplomatic ties. Carney and Trump had appeared to find common ground during a May 6 meeting at the White House and at last month’s G7 summit in Canada, where leaders had urged Trump to de-escalate.

The latest tariff threat now places renewed pressure on Ottawa and Mexico City, as the clock ticks toward a make-or-break moment for North American trade.