US President Donald Trump has declared 35 percent tariffs on Canadian imports, effective August 1, through an official letter sent to Canadian Prime Minister Mark Carney. The move aims to address both the ongoing fentanyl crisis and the high US-Canada trade deficit, which Trump argues are harming American interests.

The 35 percent tariffs will be applied across Canadian goods, outside of existing sectoral tariffs. US President Trump warned of further hikes if Canada raises its tariffs on US products. Transshipped goods, items rerouted through third countries to bypass US tariffs, will face even higher duties. Trump stated that if Canadian companies move their manufacturing to the US, these tariffs will be removed.

Prime Minister Mark Carney responded by emphasizing that Canada is committed to working with the US to find a constructive solution before the August 1 deadline.