Washington, United States (Enmaeya News) — President Donald Trump announced a sharp escalation in his trade dispute with Canada, revealing plans to impose a 35% tariff on many Canadian imports starting August 1. The move, outlined in a letter sent Thursday to Canadian Prime Minister Mark Carney, significantly raises the stakes from the 25% tariffs first introduced in March and marks a deepening rift between the two long-standing allies.
Trump defended the decision by citing concerns over fentanyl trafficking and Canadian trade practices, even though U.S. government data suggests relatively limited fentanyl inflow from Canada.
“I must mention that the flow of fentanyl is hardly the only challenge we have with Canada, which has many Tariff, and Non-Tariff, Policies and Trade Barriers,” Trump wrote.
The announcement triggered immediate unease among investors, with U.S. stock futures slipping early Friday amid mounting uncertainty over the administration’s escalating global tariff campaign. Despite optimism among some analysts that Trump may eventually walk back the hikes, the broader economic implications remain unclear.
Carney responded in a social media post Thursday, reaffirming Canada’s commitment to finding common ground with Washington while defending his government’s efforts to combat fentanyl trafficking.
“Through the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and business,” Carney said. He added that Canada has made “vital progress to stop the scourge of fentanyl.”
Canada, the United States’ second-largest trading partner after Mexico, has already imposed retaliatory tariffs on a number of U.S. products and has pushed back strongly on what it sees as economic intimidation. Prime Minister Carney, who won election in April promising to “keep our elbows up,” has steered Canada toward deeper ties with the European Union and the United Kingdom in response to Trump’s unpredictable trade policies.
“In the face of global trade challenges, the world is turning to reliable economic partners like Canada,” Carney wrote Thursday alongside a photo of his meeting with British Prime Minister Keir Starmer.
Trump, for his part, has shown little sign of softening. During Carney’s visit to the White House in May, Trump reportedly told him there was no chance of lifting tariffs, stating bluntly, “Just the way it is.”
The new tariff announcement comes as part of a broader wave of trade actions by Trump, who has sent similar letters to 23 countries in recent weeks. Some of these messages have taken on an unusually personal tone. On Wednesday, Brazil was hit with a 50% tariff in a letter that cited the ongoing trial of former President Jair Bolsonaro — a move seen by critics as politically charged. Trump himself is facing legal troubles related to his own 2020 election loss.
The Canadian government’s digital services tax — which would have affected major U.S. tech firms — was briefly cited as a sticking point in talks before Carney rescinded the measure and negotiations resumed. Still, long-term uncertainty clouds the 2020 United States-Mexico-Canada Agreement (USMCA), which is up for review in 2026.
Trump has framed the tariffs as part of a broader effort to isolate geopolitical rivals — primarily China — but the inclusion of countries like Brazil and Canada has muddied that message. Critics argue that the tactic undermines international trade norms.
“Sovereign equality and non-interference in internal affairs are important principles of the U.N. Charter and basic norms governing international relations,” said Mao Ning, spokesperson for China’s Foreign Ministry. “Tariffs should not be used as a tool for coercion, bullying and interference in the internal affairs of other countries.”
Trump has yet to finalize many of the trade agreements he has promised, despite earlier claims that negotiations would be simple. Following an initial tariff announcement on April 2 — dubbed “Liberation Day” by the administration — financial markets slumped, prompting a 90-day period of reduced 10% baseline tariffs. But Trump now says that rate is no longer in place.
“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%,” Trump told NBC News.
While new trade deals have been announced with the U.K., Vietnam, and China, many details remain murky. Tariffs on Chinese imports, initially hiked to 145%, were later scaled back to 55% after renewed dialogue with Beijing.
As global markets brace for impact, Trump’s tariffs on Canada signal not just a trade dispute, but a shift in the political and economic relationship between two countries long seen as partners in North America.
