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Trump Threatens 35% Canada Tariff, Floats Higher Global Rate
Former U.S. President Donald Trump has declared a sweeping new 35% tariff on select Canadian imports, set to take effect on August 1, 2025, in what he described as a necessary move to “protect American workers and national interests.” In a press briefing late Wednesday, Trump cited concerns over Canada's agricultural policies, trade imbalance, and security issues — including alleged fentanyl trafficking routes, despite limited evidence linking Canada to the problem. The tariff significantly increases from the earlier 25% rate previously applied to some sectors.
ECONOMICS
7/11/20251 min read
“Canada has taken advantage of us for too long,” Trump said. “We will no longer allow unfair practices and weak border enforcement to threaten American prosperity.”
In addition to targeting Canada, Trump warned of broader global tariffs ranging from 15% to 20% on countries that do not have specific trade arrangements with the United States. These new rates would raise the general tariff baseline from the current 10%, affecting multiple regions including Asia, Europe, and South America.
Canadian Prime Minister Mark Carney, who took office in April, responded firmly, indicating Canada will not bow to pressure. “We stand by free and fair trade,” Carney said. “Retaliation is not off the table.”
Market reaction was swift. U.S. stock futures slipped following the announcement, while the Canadian dollar weakened. Analysts warn that the move could disrupt supply chains — particularly in automotive, dairy, and raw materials — at a time when economic uncertainty is already high.
Negotiations between Washington and Ottawa are expected to continue in the coming weeks, with a July 21 deadline set for broader talks on trade and security cooperation. Canada is also reportedly exploring deeper economic ties with the EU and UK in response.
The announcement comes amid a flurry of tariff threats from Trump in recent weeks, including a 50% tariff on Brazilian copper and potential hikes on imports from Japan and South Korea.
If implemented fully, the measures could significantly reshape global trade dynamics and test the resilience of international economic partnerships.