Trump Imposes 35% Tariff on Canadian Imports

President Donald Trump has announced a 35% tariff on Canadian imports effective August 1, 2025, citing both Canada's alleged failure to curb fentanyl trafficking and ongoing trade disputes over high Canadian tariffs on U.S. dairy and other goods, which he frames as national security threats. This new tariff is in addition to existing sectoral tariffs and could increase if Canada retaliates. Trump warned against attempts to circumvent the measure through transshipment. He has also proposed blanket tariffs of 15–20% for most U.S. trading partners and a 50% tariff for Brazil. Trump is offering expedited U.S. regulatory approval to Canadian and other foreign companies if they relocate manufacturing to the U.S. The policy has sparked criticism over its potential economic impact and increased uncertainty about the future of the USMCA agreement and global trade.