President Donald Trump announced in a letter that he plans to raise tariffs on a wide range of Canadian imports to 35%, a sharp escalation that further strains the already fragile relationship between the U.S. and Canada, longtime allies whose partnership has recently been tested.
The letter, sent Thursday to Canadian Prime Minister Mark Carney, marks a significant hike from the 25% tariffs Trump introduced in March following months of warnings. The administration claims the move is aimed at pressuring Canada to take stronger action against fentanyl smuggling — even though official data shows limited trafficking of the drug from Canada. Trump has also repeatedly pointed to the U.S. trade deficit with Canada, driven largely by American oil imports, as a source of frustration.
“The flow of Fentanyl is hardly the only challenge we face with Canada,” Trump wrote. “There are many Tariff and Non-Tariff Barriers and Trade Policies that continue to disadvantage the United States.”
The new tariffs are set to take effect on August 1, setting the stage for several weeks of uncertainty that could impact the global economy. While recent gains in the S&P 500 indicate investor optimism that Trump may ultimately ease off the increases, early Friday stock futures dipped — suggesting growing market unease over the administration’s tariff actions.
