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Trump Slaps 35% Tariff on Canadian Exports Starting August 1
Trump announces 35% tariff on Canadian exports to the US starting Aug 1. Over 20 countries face similar threats as Trump intensifies global trade war.
ND
by News Desk
2025-07-11
Trump Slaps 35% Tariff on Canadian Exports Starting August 1

U.S. President Donald Trump has announced a sweeping 35% tariff on Canadian exports to the United States, effective August 1, marking a major escalation in his renewed global trade war campaign.

In a formal letter sent Thursday to Canadian Prime Minister Mark Carney, Trump declared that Canada, like over 20 other economies, would be subjected to tough trade penalties unless “better terms” were reached swiftly.

The move casts serious doubt on the future of the United States-Mexico-Canada Agreement (USMCA), the trade pact that replaced NAFTA in 2020.

“Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses,” said Carney in a post on X. “We will continue to do so as we work towards the revised deadline of August 1.”

A Crumbling Pact?

USMCA was originally seen as a hard-fought compromise during Trump’s first term, but the former president’s recent aggressive tactics have reignited tensions. Both Canada and Mexico had hoped to finalize a fresh deal by July 21, but the newly imposed tariffs seem to have derailed those negotiations, pushing the deadline to August 1.

While Trump had once exempted USMCA countries from certain tariffs, his Thursday letter suggests those exemptions are being revoked.

From Cordial to Confrontational

The decision comes as a surprise to many, given what appeared to be warming relations between Trump and Carney, including recent meetings at the White House on May 6 and the G7 Summit in Canada.

Despite Trump’s past remarks — including that “Canada should be the 51st U.S. state” — both sides had signaled cooperation until this latest move.

Global Ripple Effects

Trump has also warned other global powers, including the European Union and Brazil, that they could face similar tariffs of 15%–50%, unless trade conditions are renegotiated.

In an interview with NBC, Trump confirmed that the EU will be receiving its tariff letter “today or tomorrow,” while Brazil faces up to 50% tariffs unless “fairer terms” are reached.

Brazilian President Lula da Silva said he is open to talks but stressed Brazil is exploring reciprocity measures, especially after Trump criticized the treatment of his ally Jair Bolsonaro.

Strategic Shift or Election Strategy?

Analysts believe Trump’s hardline trade approach may be part of his broader "America First" 2024 re-election strategy, appealing to domestic industries and working-class voters. However, it risks upsetting major alliances and disrupting global supply chains, particularly in energy, agriculture, and technology.

As August 1 approaches, pressure is mounting on U.S. trade partners — and on American businesses — to prepare for what may become another volatile era of protectionism.

 
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TradeWar

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