United States President Donald Trump on Thursday (local time) announced that the US will impose a tariff of 35 per cent on imports of goods from Canada.
Trump sent a letter to Canadian Prime Minister Mark Carney to inform him about the tariff.
Trump posted the letter sent to Carney on his social media platform, Truth Social. He said that Canada's failure to stop fentanyl from entering the US contributed to the tariff policy.
In the letter, Trump wrote, "As you will recall, the United States imposed Tariffs on Canada to deal with our Nation's Fentanyl crisis, which is caused, in part, by Canada's failure to stop the drugs from pouring into our Country. Instead of working with the United States, Canada retaliated with its own Tariffs. 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."
"Goods transshipped to evade this higher Tariff will be subject to that higher Tariff. As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely-In other words, in a matter of weeks," he added.
In the letter, Trump threatened to increase the tariff rate by the same amount if Canada decides to increase their tariffs on importing American products. He also targeted Canada's tariffs on US dairy exports and called the trade deficit a major threat to the US economy and national security.
