Trump threatens 35% tariffs on Canadian goods

July 11, 2025

President Donald Trump has announced plans to impose a 35% tariff on Canadian goods beginning August 1, alongside threats of additional blanket tariffs on other trading partners. This announcement comes just days before a self-imposed deadline to reach a new trade deal between the U.S. and Canada. In response, Canadian Prime Minister Mark Carney stated his government would continue protecting Canadian workers and businesses.

Who is affected

Canadian workers and businesses, particularly in auto manufacturing and metals sectors
U.S. consumers who would likely face higher prices for Canadian imports
Canadian exporters who sell approximately three-quarters of their goods to the U.S.
U.S. trading partners who received similar tariff threat letters (more than 20 countries)
The European Union, which Trump says will soon face new tariffs

What action is being taken

Trump is imposing a 35% tariff on Canadian goods scheduled to begin August 1
Canada and the U.S. are engaged in intense talks to reach a new trade and security deal
Prime Minister Carney's government is working to protect Canadian workers and businesses
Canada is making efforts to address fentanyl concerns, including appointing a "fentanyl czar" and increasing border security funding
Canada recently removed a tax on big U.S. technology firms as part of ongoing trade negotiations

Why it matters

Canada sells about three-quarters of its goods to the U.S., making these tariffs potentially devastating for Canadian exporters
The tariffs would particularly damage Canada's auto manufacturing and metals sectors
This adds to existing tariffs, including a global 50% tariff on aluminum and steel imports and a 25% tariff on foreign-built vehicles
The tariffs come despite data showing only 0.2% of U.S. fentanyl seizures occur at the Canadian border
The timing is significant as both countries approach their self-imposed July 21 deadline for reaching a new trade deal

What's next

The 35% tariffs are scheduled to begin on August 1 if no agreement is reached
Canada and the U.S. are working toward their July 21 deadline to reach a new trade deal
Trump has suggested tariffs could be modified based on the relationship with Canada
Canada has previously imposed counter-tariffs on the U.S. and has vowed more if they fail to reach a deal by the deadline

Read full article from source: BBC