US-Canada Trade Tensions Explode As Trump Hikes Tariffs To 35%

President Donald Trump has signed an executive order raising tariffs on Canadian goods from 25% to 35%, effective Friday, August 1, citing Canada’s alleged failure to curb the importation of fentanyl and other illicit drugs into the United States.....KINDLY READ THE FULL STORY HERE▶

According to a statement from the White House, the executive order was signed on Thursday to hold Canada accountable for its role in the ongoing drug crisis affecting the U.S.

In a separate order signed the same day, Trump also adjusted reciprocal tariff rates for several other nations, targeting countries with significant trade surpluses with the United States. The White House emphasized that the move is part of Trump’s broader strategy to secure national security and economic stability through “fair, balanced, and reciprocal” trade policies.

Earlier in April, Trump had introduced a 10% universal tariff on all countries, with even steeper rates for those with which the U.S. maintains large trade deficits. Those tariffs took effect on April 9.

Since then, Trump’s administration has negotiated multiple trade agreements. For example, a deal with the European Union included $750 billion in energy purchases and $600 billion in investments by 2028, with a 15% baseline tariff. A similar agreement with Japan involved a $550 billion investment in U.S. industries and greater access to Japanese markets for American exports.

The updated tariff list shows Syria facing a 41% rate, Myanmar and Laos 40%, Switzerland 39%, while Serbia and Iraq will be charged 35%. Algeria, Bosnia and Herzegovina, Libya, and South Africa will face 30% tariffs.

The White House justified the aggressive tariff strategy by stating that years of unchecked trade imbalances have threatened U.S. security and economic interests. The administration specifically pointed to the rising threat posed by fentanyl, with drug cartels allegedly operating synthesis labs in Canada.

Earlier this month, Trump had warned of the 35% tariff unless Canada took stronger action against fentanyl trafficking. Reports from U.S. Customs and Border Protection indicate that 74 pounds of fentanyl were seized at the northern border in the current fiscal year.

U.S. officials also claim Canadian-based drug networks are operating “super labs” capable of producing 44 to 66 pounds of fentanyl weekly, particularly in remote areas of western Canada.