Trump Hikes Tariffs on Canada to 35 Percent

The White House cited Canada’s ‘failure’ to curb fentanyl trafficking and its continued use of counter-tariffs as reasons for the increase.
Trump Hikes Tariffs on Canada to 35 Percent
President Donald Trump meets with Prime Minister Mark Carney in the Oval Office on May 6, 2025. Anna Moneymaker/Getty Images
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U.S. President Donald Trump has followed through on his threat to raise tariffs on Canada from 25 percent to 35 percent starting on Aug. 1, with the White House saying the country has “failed” to stop the flow of fentanyl and other drugs into the United States through their shared border.

Products under the United States-Mexico-Canada Agreement (USMCA) continue to be exempt from the tariffs. The White House says products that are transshipped to evade the 35 percent tariff will be subject to a 40 percent rate. Canada is also subject to sectoral tariffs, including on steel, aluminum, copper, autos, and lumber.