President Donald Trump notified Canada on the 10th (local time) that a comprehensive additional tariff of 35% would be imposed. The reason given was the failure to prevent the influx of the drug 'fentanyl.'
As the United States imposes a universal tariff of around 10% on most trading partners, the North American trade conflict is escalating again with the imposition of punitive high tariffs on Canada.
In a letter sent to Canadian Prime Minister Mark Carney on that day, President Trump stated, "The failure of Canada to stop the flow of fentanyl pouring into the United States contributed to this," and added, "A 35% tariff will be imposed on all imports from Canada starting August 1." The letter was made public through Trump's social media.
According to the letter, this tariff will be applied separately from all other tariffs currently imposed. President Trump warned, "If Canada decides to impose retaliatory tariffs, the rates you choose will be added to our imposed 35%."
In addition to the fentanyl issue, President Trump mentioned, "Canada is imposing tremendous tariffs of up to 400% on U.S. dairy farmers," pointing out the chronic trade deficit problem. However, he left room for negotiation, stating, "If Canada cooperates with us to stop the influx of fentanyl, we can consider adjustments to this letter (tariff action)."
This action is interpreted as an extension of Trump's 'reciprocal tariff' policy. In April, President Trump declared 'Liberation Day' and has been pursuing a policy of imposing a universal tariff of 10% on most trading partners and imposing additional tariffs based on trade deficit size. The recent notification of a 35% tariff on Canada also came in line with this trend.
President Trump has repeatedly argued that "other countries should pay tariffs of 15%, 20%, or more to the U.S." This logic implies that a corresponding price must be paid to access the U.S. market. This reflects the hallmark of 'Trump-style' diplomacy, utilizing tariffs as pressure tools not only to resolve the trade deficit but also to address non-trade issues like fentanyl trafficking and illegal immigration. U.S. media, including the Associated Press, reported that the Trump administration has maintained a base tariff of at least 10% on most countries while adjusting additional rates through negotiations.
Canada is expected to strongly oppose this measure. Prime Minister Mark Carney previously declared that he would "not back down" from Trump's tariff threats, stating, "We will take retaliatory measures that can inflict the greatest shock on the U.S." At that time, he emphasized that "the long-standing relationship with the U.S. is over" and that economic dependence on the U.S. should be reduced.
The United States and Canada are among the largest trading partners sharing the longest border in the world. If this action reignites a trade war between the two countries, it is expected to shake the entire North American supply chain and have significant repercussions on the global economy.