Trump Imposes 35% Tariff on Canada, Expands Trade War Threats

Trump imposes 35% tariff on Canadian exports starting August 1.
USMCA trade talks risk collapse amid growing tariff threats.
Brazil and EU among nations facing potential new U.S. levies.

Starting August 1, Canadian exports to the United States will face a steep 35% tariff, according to a letter sent by former U.S. President Donald Trump to Canadian Prime Minister Mark Carney on Thursday.

The move is the latest in a series of over 20 such letters issued by Trump in just four days, reigniting fears of a widespread trade war.

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EKO HOT BLOG reports that the tariff announcement threatens to derail ongoing talks aimed at salvaging the United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA in 2020. Canada and Mexico have been locked in negotiations with U.S. officials, hoping to reach a resolution by July 21. However, Trump’s new deadline of August 1 appears to shift the goalposts.

Canadian Prime Minister Carney responded on social media, vowing to protect Canadian businesses and workers. “We will continue to defend our economic interests as we work toward the revised deadline,” he said.

Despite recent warming ties—Carney visited the White House in May, followed by a G7 meeting in Canada—Trump’s new measures reflect his administration’s recurring trade hardline. Earlier, Canada had agreed to drop tech taxes that impacted U.S. firms, leading Trump to resume talks.

Trump defended his position in an interview with NBC, revealing plans to extend similar tariffs—between 15% and 20%—to other nations that haven’t received formal letters. Brazil could face up to 50% tariffs, while the European Union is next on Trump’s list.

Meanwhile, Brazilian President Lula da Silva said his government is open to dialogue but warned that reciprocal tariffs were being considered. In his letter, Trump criticized Brazil’s treatment of his political ally, Jair Bolsonaro.

As trade tensions rise, fears are growing over the impact on global supply chains and diplomatic relations.