In a significant move amid rising global trade tensions, U.S. President Donald Trump announced on Thursday that the United States will impose a 35% tariff on all imports from Canada, effective August 1, 2025.

The announcement was made in a letter addressed to Canadian Prime Minister Mark Carney and later posted on Trump’s Truth Social platform. This marks the latest in over 20 letters issued by the Trump administration to various global leaders since the start of the week.

Retaliation Over “Unfair” Trade Practices

Trump justified the decision by accusing Canada of failing to cooperate in ongoing trade negotiations and instead retaliating with its own tariffs.

“Instead of working with the United States, Canada retaliated with its own tariffs,” Trump wrote. “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.”

Warning of Escalation

The letter also included a clear warning: if Canada raises its tariffs on U.S. goods, the United States would increase the 35% tariff by an equivalent amount.

“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% that we charge,” Trump stated.

Concerns Over Dairy, Fentanyl, and Trade Deficit

Trump criticized Canada’s dairy tariffs, claiming they reach as high as 400%, which he said significantly hinder American farmers’ access to Canadian markets. He also cited Canada’s trade policies and the flow of fentanyl into the U.S. as serious issues affecting American economic and national security.

“The trade deficit is a major threat to our economy and, indeed, our national security,” Trump added.

Broader Trade War Developments

Earlier this week, Trump extended the tariff deadline for several U.S. trading partners — including Canada — from July 9 to August 1, allowing additional time for negotiations. However, the extension came alongside new tariffs imposed on multiple countries, including key allies such as Japan and South Korea.

In addition, the administration announced a 50% tariff on copper, signaling a broader and more aggressive approach to global trade.

Awaiting Canada’s Response

As of now, the Canadian government has not issued an official response to the announcement. Experts warn that the move could significantly strain economic ties between the two countries and lead to further retaliatory measures.