Trump Smacks Canada with Tariff Hike Over Failure to Hold Up Their End of the Deal

Conservative News DailyAugust 1, 2025

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President Donald Trump has increased the tariff rate on U.S. imports from Canada from 25 percent to 35 percent, effective immediately. The White House justified this action by accusing Canada of insufficient efforts to curb the flow of illicit drugs, traffickers, and criminals across the northern border. Trump has expressed ongoing frustration over trade deficits with canada, especially regarding oil imports, and tensions have risen following Canada’s announcement to recognize a Palestinian state, which Trump said would complicate trade negotiations.

Canadian Prime Minister Mark Carney responded by emphasizing that Canada will only agree to a trade deal that benefits Canadians, highlighting that canada accounts for only 1 percent of U.S.fentanyl imports and has invested heavily in border security. He acknowledged that industries such as lumber, steel, aluminum, and automobiles could be considerably affected but pledged to minimize job losses.

While Canada was excluded from the latest list of countries facing new tariffs effective August 7, some Canadian imports not covered under the USMCA trade agreement are now subject to higher duties. Additionally, the U.S.will maintain current tariffs on Mexico during a 90-day negotiation period following recent talks.

President Donald Trump has raised the tariff rate on U.S. imports from Canada to 35 percent from 25 percent, effective Friday.

The announcement from the White House late Thursday said Canada had failed to “do more to arrest, seize, detain or otherwise intercept … traffickers, criminals at large, and illicit drugs.”

Trump has spoken out against Canada for months. He had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.

On Thursday, the president said Canada’s announcement it will recognize a Palestinian state would “make it very hard” for the United States to reach a trade agreement with its northern neighbor. Trump has also expressed frustration with a trade deficit with Canada that largely reflects oil purchases by America.

Prime Minister Mark Carney said Ottawa would only agree to a deal “if there’s one on the table that is in the best interests of Canadians.”

In a statement released early Friday, he said he was disappointed by Trump’s actions and vowed to diversify Canada’s exports.

“Canada accounts for only 1 percent of U.S. fentanyl imports and has been working intensively to further reduce these volumes,” he said, pointing to heavy investments in border security.

Carney added that some industries — including lumber, steel, aluminum and automobiles — will be harder hit, but said his government will try to minimize the impact and protect Canadian jobs.

Canada was not included in Trump’s updated list of tariff rates on other countries announced late Thursday. Those import duties are due to take effect on Aug. 7.

Trump sent a letter to Canada a few weeks ago warning he planned to raise duties on many goods imported from Canada to 35 percent.

Some imports from Canada are still protected by the 2020 United States-Mexico-Canada Agreement, or USMCA, which is up for renegotiation next year.

The White House’s statement said goods transshipped through Canada that are not covered by the USMCA would be subject to a 40 percent tariff rate. It did not say where the goods might originate.

President Donald Trump said Thursday that there would be a 90-day negotiating period with Mexico after a call with that country’s leader, Claudia Sheinbaum, keeping 25 percent tariff rates in place.

The Western Journal has reviewed this Associated Press story and may have altered it prior to publication to ensure that it meets our editorial standards.