The president is the master of the art of the deal. And now he’s putting it to use.
Because President Trump turned the tables on this nation during a consequential negotiation.
Trump Imposes 35% Tariff on Canadian Imports to Bolster U.S. Economy
President Donald Trump announced Thursday that starting August 1, 2025, a 35% tariff will be imposed on goods imported from Canada, with the potential for blanket tariffs exceeding 10%, as part of his aggressive trade strategy to strengthen the American economy.
In a letter to Canadian Prime Minister Mark Carney, Trump emphasized the move addresses the U.S. trade deficit and the fentanyl crisis, stating:
“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 United States of America has agreed to continue working with Canada, despite Canada having financially retaliated against the United States.”
The announcement, part of a wave of tariff notifications to 23 countries, emphasizes Trump’s commitment to protecting American workers and industries.
Addressing Trade Imbalances and National Security
The letter to Carney highlighted the $63.3 billion U.S. trade deficit with Canada in 2024, down 1.4% from 2023, which Trump called a “major threat” to the economy and national security. He linked the tariffs to Canada’s failure to curb fentanyl smuggling, noting, “As you will recall, the United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our Country.”
Trump warned that goods transshipped to evade the 35% tariff would face penalties, and Canadian retaliation could lead to higher rates.
However, he offered an incentive, stating that Canadian companies manufacturing in the U.S. would be exempt from tariffs, with approvals processed “quickly, professionally, and routinely — In other words, in a matter of weeks.”
This aligns with Trump’s push for domestic job creation, as evidenced by the $762.1 billion in U.S.-Canada trade in 2024, according to the Office of the U.S. Trade Representative.
Expanding Tariff Strategy for American Prosperity
Trump’s tariff policy builds on previous measures, including 25% tariffs on Canadian and Mexican automobiles, aluminum, and steel not compliant with the United States-Mexico-Canada Agreement (USMCA), though it remains unclear if USMCA exemptions will apply after August 1.
In an NBC News interview with Kristen Welker, Trump hinted at increasing the baseline 10% tariff on all imports, saying, “We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now.”
He noted positive market reactions, adding, “I think the tariffs have been very well-received. The stock market hit a new high today.”
Additionally, Trump announced a 50% tariff on copper imports, signaling a strategy to protect American industries. The president suggested flexibility, stating, “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” reinforcing his commitment to fair trade and national security while fostering economic growth.
