- Donald Trump has announced 35% tariffs on most goods imported from Canada from 1 August 2025.
- The decision is in response to trade barriers and Canada’s insufficient action against fentanyl smuggling.
- The US has announced the possibility of further tariff increases if Canada takes retaliatory measures.
- Additional tariffs are also planned on goods from the EU, Japan, South Korea and copper imports.
US raises tariffs on Canadian imports
US President Donald Trump has announced that from 1 August 2025, the US will impose 35 per cent tariffs on most goods imported from Canada. The decision is intended as a response to Canada’s inadequate efforts to combat fentanyl smuggling and trade barriers that he believes hurt US farmers and businesses.
In a letter to Canadian Prime Minister Mark Carney, Trump stressed that if Canada decides to retaliate, tariffs could be raised further. At the same time, he indicated that tariffs could be eased if decisive steps were taken to combat the illegal fentanyl trade. The tariffs are to be introduced despite ongoing negotiations between the US and Canada on a new trade agreement, which was expected to be finalised by 21 July.
More countries may be subject to new tariffs
The Trump administration also plans to impose 15-20 per cent tariffs on goods from other countries, including the European Union, Japan and South Korea. In addition, a 50 per cent tariff on copper imports has been announced. The new measures are expected to come into effect in the coming weeks and are part of a broader strategy to protect US industry.
News of the planned tariffs immediately affected financial markets, with US and European index futures falling and the US dollar strengthening against the euro and Canadian dollar. Canada announced retaliatory measures and stressed that it was strengthening its action against smuggling while protecting the interests of domestic producers.
