July 11 (UPI) — President Donald Trump has announced a 35% tariff on all imports from Canada, reigniting a trade war with the United States’ closest ally and one of its most important trading partners, threatening to derail ongoing trade negotiations between the two.
Trump announced the tariffs in a letter to Prime Minister Mark Carney of Canada on Thursday, stating the new punitive measures will go into effect Aug. 1.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, it will be added onto the 35% that we charge” the American president threatened.
Trump claims the tariffs are in response to fentanyl being smuggled into the United States over its northern border, for which he has already imposed a 10% tariff on Canada.
In response, Canada vowed to increase border security.
Statistics from the Government of Canada show that fentanyl seizures by U.S. border officials at the Canada-U.S. border represent less than 0.1% of U.S. fentanyl seizures between 2022 and 2024.
According to the statistics, only 59 pounds of the synthetic opioid were seized at their shared border between 2022 and 2024, compared to nearly 62,000 pounds seized at the southern border in that same timeframe.
“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump told Carney in the letter Thursday.
“These Tariffs may be modified, upward of downward, depending on our relations with your Country.”
Trump said the tariffs are separate from the sectorial tariffs he earlier imposed, including a 50% levy on all imported steel and aluminum products, a 25% tariff on non-USMCA-compliant autos and auto parts and a 50% tariff on cooper imports, which has yet to take effect.
Canada has retaliated with a 25% tariff on tens of billions of dollars worth of U.S. products.
Trump’s trade war and threats to annex Canada have soured relations with the Great White North, with Carney — whose Liberal Party won parliamentary elections in late April largely on anti-Trump sentiment — describing the American president’s actions as a “betrayal” and turning to Europe in an effort to lessen Canada’s dependence on its southern neighbor.
Carney late Thursday issued a statement saying he is committed to working with the United States to “stop the scourge of fentanyl in North America,” while explaining he has “steadfastly defended our workers and businesses” in negotiations with the United States.
Trump’s tariffs were not mentioned.
“We are building Canada strong,” he said on X. “The federal government, provinces and territories are making significant progress in building one Canadian economy.”
The tariffs come as the United States and Canada had set a goal of signing a new trade deal by July 21.
Trump had called off trade talks last month over a new Canadian tax on technology firms generating revenue, but which was essentially rescinded by Carney hours before it was to go into effect in order for trade talks to resume.
The new tariffs on Canada came as Trump announced a flurry of economic levies on a number of countries.
Trump often turns to tariffs as a tool to equalize trade deficits, as a negotiation tactic and as an attempt to spur domestic industry.