In a striking move, US President Donald Trump announced on Friday a steep 35% tariff on imports from Canada. This hefty import duty, effective from August 1, 2025, will cover all Canadian products entering the United States. Trump justified his decision as a response to Canada's retaliatory actions and unfair trade practices.
In his official letter, Trump explicitly stated that Canada has failed to halt the supply of dangerous drugs like fentanyl into the US, posing a severe threat to American society. He emphasized the need for the US to prioritize its security and economy.
Trump wrote in a letter, 'As you know, the US had previously imposed tariffs to combat the expanding fentanyl crisis, which has been exacerbated partly due to Canada's failure.'
He warned that any Canadian company attempting to evade this tariff through transshipment to another country will still be subjected to the tariff.
Source: aajtak
'Retaliation from Canada Will Mean Higher Tariffs'
Trump made it clear that should Canada retaliate by increasing tariffs on American products, the US will respond with even higher tariffs. He stated, 'If you increase tariffs for any reason, we will add your percentage increase to our 35% rate.'
Trump Targets Canadian Dairy Policies
Criticizing Canada's dairy policies, Trump noted Canada imposes up to a 400% import duty on American dairy farmers. As a result, the US suffers significant trade deficits, turning it into a national security issue. In his letter, he wrote, 'Canada imposes unprecedented taxes on our dairy farmers, despite them not being allowed to sell their products there.'
Invitation to Canadian Companies
Alongside this decision, Trump extended an invitation to Canadian companies to set up units in the United States. He promised rapid, professional, and regular approvals for businesses willing to start operations in the US. 'If any Canadian company wants to produce in America, we will provide all approvals within weeks,' he wrote.
