Donald Trump announced a 35% tariff on Canadian products from August 1, 2025. He cited the fentanyl crisis and trade deficit as reasons.
Trump Tariff: U.S. President Donald Trump has announced a 35% tariff on all products coming from Canada, effective August 1, 2025. Trump attributed this move to Canada's failure to curb the supply of dangerous drugs like fentanyl and the significant trade deficit the U.S. is experiencing. He also bly criticized Canada's dairy policies and warned that if Canada retaliates, the U.S. would increase taxes further. Trump also invited Canadian companies to establish manufacturing units in the United States.
Heavy Tariff on Imports from Canada
U.S. President Donald Trump made a significant and impactful decision on Friday. He announced a 35% tariff, or import duty, on all products coming from Canada. This new duty will come into effect on August 1, 2025, and will apply equally to all types of Canadian products.
Trump cited two major reasons behind this decision – first, the continuous supply of dangerous drugs like fentanyl into the U.S., and second, the significant trade deficit the U.S. has with Canada.
Fentanyl Crisis: Trump holds Canada responsible
In his official letter, Trump explicitly stated that Canada has failed to prevent the smuggling of dangerous drugs like fentanyl into the United States. He wrote, “As you know, the United States has imposed tariffs before to control the spreading fentanyl crisis in the country. This crisis has been exacerbated, in part, by Canada's failure.”
Fentanyl is an extremely lethal synthetic drug, which has become the leading cause of overdose deaths in the United States. Trump linked this crisis to national security, stating that the U.S. now needs to prioritize the safety of its citizens and its economy.
Trump's Stern Warning: Tariff on Transshipment as well
Trump warned that if any Canadian company attempts to circumvent this tariff by sending its products to the U.S. through a third country, a 35% tariff will be imposed on them as well. This process, known in trade terms as transshipment, will be closely monitored to prevent any company from tax evasion.
Further Tax Increase Upon Retaliation
In his letter, Trump also clarified that if Canada responds to this decision by increasing import duties on its products, the U.S. will retaliate. He wrote, “If, for any reason, you raise tariffs, we will add the percentage you raise to the 35%.”
Trump's Attack on Canada's Dairy Policies
Trump called Canada's dairy policy unfair and discriminatory. He said that Canada imposes tariffs of up to 400% on American dairy farmers' products. Furthermore, American farmers are not fully allowed to sell their products in Canada. He wrote, “Canada imposes unprecedented taxes on our dairy farmers. That too when our farmers are not even allowed to sell products there.”
Invitation to Canadian Companies to do Business in the U.S.
While Trump showed strictness against Canada, he also invited Canadian companies to start businesses in the United States. He said that if any Canadian company wishes to set up a manufacturing unit in the U.S., it will receive all approvals within a few weeks.
He wrote, “We will give approvals through a fast, professional, and transparent process to companies willing to do business. Entrepreneurs investing in the U.S. are welcome.”
