Trump writes to Canadian PM about US decision to levy 35 per cent tariff from August 1st

Canadian PM says they would work towards defending their country’s interests and would continue to work with the U.S.

U.S. President Donald Trump through an official communique to Canadian Prime Minister Mark Carney shared his decision to levying 35 per cent tariffs on all Canadian products from August 1st.

“It is a Great Honor for me to send you this letter in that it demonstrates the strength and commitment of our Trading Relationship, and the fact that the U.S. has agreed to continue working with Canada, despite Canada having financially retaliated against the US,” wrote PM Trump on Thursday.

Trump says these tariffs are in response to Canada’s retaliatory tariffs on the US.

“As you will recall, the US imposed Tariffs on Canada to deal with our Fentanyl crisis, which is caused, in part, by Canada's failure to stop the drugs from pouring into our Country. Instead of working with the US, Canada retaliated with its own Tariffs,” added Trump.

Starting August 1, 2025, US will charge Canada a Tariff of 35 per cent on Canadian products sent into the US, separate from all Sectoral Tariffs.

“Goods transshipped to evade this higher Tariff will be subject to that higher Tariff. As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the US and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely,” he added. This is a matter of weeks.

President Trump went further to state if Canada decided to raise their Tariffs, then, whatever the number they choose to raise them by, would be added onto the 35 per cent that U.S. would charge.

“Also, 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 US. Canada charges extraordinary Tariffs to our Dairy Farmers — up to 400 per cent - and that is even assuming our Dairy Farmers even have access to sell their products to the people of Canada,” he added.

The Trade Deficit is a viewed as a major threat to U.S. Economy indeed and national security.

“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” he added.

President Trump also said that these Tariffs could be modified, upward or downward, depending on their bilateral relationship.

“You will never be disappointed with the US,” he added.

Meanwhile, Canadian PM has said that throughout the current trade negotiations with the US, they steadfastly defended Canadian workers and businesses.

“We will continue to do so as we work towards the revised deadline of August 1,” PM Carney said.

Canada has made vital progress to stop the scourge of fentanyl in North America.

“We are committed to continuing to work with the United States to save lives and protect communities in both our countries. We are building Canada strong. The federal government, provinces and territories are making significant progress in building one Canadian economy. We are poised to build a series of major new projects in the national interest. We are strengthening our trading partnerships throughout the world,” Carney added.