US President Donald Trump has announced a 35% tariff on all goods imported from Canada, starting August 1, 2025. He shared this decision in a letter to Canadian Prime Minister Mark Carney, making it one of over 20 such letters Trump has issued this week.

Trump Accuses Canada of Retaliation

Trump justified the move by accusing Canada of retaliating during ongoing trade talks. “Instead of working with the United States, Canada retaliated with its own Tariffs,” he wrote in the letter, which he also posted on Truth Social.

He emphasized that the new tariff would be separate from any sector-specific tariffs already in place.

US Threatens Higher Tariffs if Canada Responds

Trump also warned Canada against fighting back. “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,” he wrote.

In other words, if Canada hikes its own tariffs on US goods, the US will raise its 35% tariff by an equal percentage.

Dairy Tariffs and Trade Deficit Under Fire

Trump strongly criticized Canada’s dairy tariffs, which he claimed are as high as 400%. He said such policies make it very hard for American farmers to enter Canadian markets.

According to Trump, the US trade deficit is a serious problem. “The Trade Deficit is a major threat to our Economy and, indeed, our National Security,” he said. He also blamed issues like fentanyl smuggling and unfair trade rules for hurting the American economy.

Ongoing Trade War Expands

Earlier this week, Trump extended the tariff deadline for several countries from July 9 to August 1 to allow more time for negotiation.
However, at the same time, he took a tougher stance. He announced new tariffs on countries like Japan and South Korea, both longtime US allies. Additionally, Trump introduced a 50% tariff on copper, a key material used in technology and green energy.