35% levy will be separate from sectoral tariffs, president says, adding that foods transshipped to dodge the higher tariff will be subject to increased duties
US President Donald Trump announced Thursday that his administration will impose a 35% tariff on goods imported from Canada starting from Aug. 1.
Trump outlined his reasons for the steep tariff hike in an official letter posted on his Truth Social platform.
"It is a Great Honor for me to send you this letter in that it demonstrates the strengths and commitments of our Trading Relationship, and the fact that the United States of America has agreed to continue working with Canada, despite Canada having financially retaliated against the United States.
"As you will recall, the United States imposed Tariffs on Canada to deal with our Nation's Fentanyl crisis, which is caused, in part, by Canada's failure to stop the drugs from pouring into our country," he said in the letter, which was addressed to Canadian Prime Minister Mark Carney.
He added that Ottawa responded with its own tariffs rather than working with Washington, noting that the 35% tariff will be separate from all sectoral tariffs.
Goods transshipped to dodge the higher tariff will be subject to increased duties, he noted.
There will be no tariffs if Canada, or companies based in Canada, choose to build or manufacture their products within the US, Trump said, adding that every effort will be made to ensure approvals are granted "quickly, professionally, and routinely — In other words, in a matter of weeks."
If Canada decides to impose more tariffs, whatever rate it sets will be added on top of the "35% that we charge," he highlighted.
The flow of fentanyl is far from the only issue the US faces with Canada, Trump noted, stressing that Canada maintains numerous tariff and non-tariff policies and trade barriers that contribute to unsustainable trade deficits with the US.
Canadian tariffs on US dairy products can reach as high as 400%—and that is assuming American dairy farmers are even allowed access to the Canadian market, he added, saying this trade imbalance poses "a major threat" to the economy as well as the national security of the US.
