Trump Imposes 35% Tariff on Canada Effective August 1 | Business and Economic Updates

A US tariff of 35% on Canadian imports is set to take effect in August, as President Trump broadens his trade war and considers blanket tariffs of 15 to 20% on other trading partners. This comes from a letter Trump sent to Canadian Prime Minister Mark Carney, stating that the new tariff rate will increase if Canada retaliates. Since Monday, this is one of over 20 letters Trump has issued as part of his ongoing trade war strategy against multiple economies. This move comes despite recent improvements in US-Canada relations, including a meeting between Trump and Carney in May and discussions at the G7 summit in Canada. According to Trump, other trading partners not yet affected by such letters will also likely face tariffs of either 20% or 15%, with the final decision to be made shortly. Alongside this, Trump has recently imposed new tariffs on several countries, including Japan and South Korea, and increased tariffs on copper. Also, Myanmar has requested Trump to lower its 40% tariff rate, with the ruling Senior General Min Aung Hlaing even suggesting the possibility of sending a negotiation team to Washington. This development risks the July 21 trade negotiation deadline between Canada and the US. Both countries, along with Mexico, are attempting to find ways to appease Trump in order to keep the USMCA trade deal on track. Originally negotiated to replace NAFTA, the USMCA came into effect in July 2020 and was recently accelerated for review due to Trump’s trade wars, initially imposing 25% tariffs on Canadian and Mexican products, with exceptions for USMCA-covered goods and lower rates for Canadian energy.

Source: https://www.aljazeera.com/news/2025/7/11/trump-slaps-35-percent-tariff-on-canada-starting-august?traffic_source=rss