President Donald Trump is threatening to slap a steeper 35% tariff on products from Canada beginning August 1 unless steps are taken to curb the flow of fentanyl over its shared border with the United States.
Trump warned Canadian Prime Minister Mark Carney in a letter on Thursday that the United States would hike the rate up from 25% – and possibly more. Still, Canada could avoid some or all of the added tariff, he suggested.
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your country,” the president wrote.
A White House official told The Wall Street Journal that goods in compliance with the U.S.-Mexico-Canada Agreement would at least for now be exempt from the 35% tariff rate — as they had been with the 25% penalty Trump implemented earlier this year.
Canadian goods that are “transshipped,” or products sent to the United States via another country first to evade the tariff on Canada, would still be subject to the heightened rate.
Trump, who noted the larger penalty would be “separate from all Sectoral Tariffs,” railed against Canada’s trade policies. He said they “cause unsustainable trade deficits against the United States” and placed a focus on dairy farmers.
“Canada charges extraordinary Tariffs to our Dairy Farmers — up to 400% — and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada. The Trade Deficit is a major threat to our Economy, and, indeed, our National Security!” the president wrote.
Trump also mentioned in his letter how Canada previously “retaliated” with its own tariffs rather than “working with” the United States.
The escalation in the tariff fight with the United States’ neighbor to the north comes as the president has prepared an increased blanket tariff for a slate of countries that have either not been notified of increased tariffs yet or have already agreed to a framework of a trade deal with the United States.
“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump told NBC News on Thursday.
“I’d like to do it today,” Trump said of his plan to send letters laying out new tariff schedules. “I’m talking European Union, which is, as you know, many countries, and Canada. We’ll be putting them out over the next couple of hours.”
In recent days, Trump has posted a number of letters warning of new tariff rates.
On Wednesday, Trump posted one of his steepest threats, warning Brazilian President Luiz Inácio Lula da Silva that Brazilian products could face a 50% jump in tariffs over the government’s treatment of former Brazilian President Jair Bolsonaro, who is facing charges related to the 2022 election.
“This is nothing more, or less, than an attack on a Political Opponent — Something I know much about!” Trump wrote in a Truth Social post defending Bolsonaro.
“The Great People of Brazil will not stand for what they are doing to their former President. I’ll be watching the WITCH HUNT of Jair Bolsonaro, his family, and thousands of his supporters, very closely. The only Trial that should be happening is a Trial by the Voters of Brazil — It’s called an Election. LEAVE BOLSONARO ALONE!” he wrote.
