Trump imposes 35% tariff on Canada in escalation of US trade war, mentions how he can 'consider an adjustment'

Escalating his tariff war, United States President Donald Trump on Thursday (July 11) sent a letter to Canada Prime Minister Mark Carney stating that his country will face a 35 percent tariff on exports to the United States starting August 1. Trump has sent more than 20 such letters since Monday, including to countries like South Korea, Japan and Brazil. The POTUS had on April 2 announced reciprocal tariffs on all trading partners of the United States in what he called ‘Liberation Day.’ He then paused these tariff rates for a period of 90 days, giving an opportunity to countries to negotiate and seal a deal. In this tenure, Trump has announced a trade deal with China and has said that India is very close to striking a deal.

In his letter to Canada, Trump wrote, "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." Trump posted the letter on his Truth Social platform. Earlier in March 2025, Trump had imposed tiered tariffs on Canada—including 25% on cars/auto parts, 50% on steel and aluminum—as part of his expanding protectionist agenda. Trump justified these tariffs in part by referencing Canada’s alleged failure to combat fentanyl trafficking.

Earlier on July 7, Trump announced fresh tariffs on 14 countries, with the highest rate of 40 per cent being imposed on Myanmar and the Lao People’s Democratic Republic. Japan and South Korea were the first countries named in the list with 25 per cent tariff each. In each of these letters, Trump warned of retaliatory measures if the concerned country increases its tariff against the US. These tariffs would come into effect from August 1 this year.

Trump is keeping the door open for potential reductions or negotiations

In his letter, Trump majorly stated the Fentanyl influx for the reason of steep tariff rates. However, he also said, “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, which cause unsustainable Trade Deficits against the United States. Canada charges extraordinary Tariffs to our Dairy Farmers up to 400%-and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada. The Trade Deficit is a major threat to our Economy and, indeed, our National Security!”

Later, in providing a window of negotiation of sorts, he said, “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter. These Tariffs may be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America.”