United States President Donald Trump has announced that he will raise import tariffs on most Canadian goods to 35 percent, even though Canada has agreed to rescind its planned digital services tax as the US demanded.This comes as Trump sends “tariff letters” to a host of countries this week, notifying them of planned US trade levies to take effect on August 1 if trade deals are not struck before then.
What has Trump announced for Canada?
In late June, Trump threatened to end trade talks with Canada over its plans to push ahead with a new digital services tax, which would hit US technology companies financially. The US president said it was “a direct and blatant attack on our Country”. Canada quickly agreed to withdraw the tax.
But, in a letter released on his social media platform on Thursday this week, Trump nevertheless told Canadian Prime Minister Mark Carney that a new 35 percent tariff – an increase from the 25 percent rate originally imposed in March – would go into effect on August 1 and would rise if Canada retaliated with new tariffs of its own.
What do the US and Canada trade?
Canada is America’s second-largest trading partner, after Mexico. In 2024, Canada bought $349.4bn of US goods and exported $412.7bn, according to US Census Bureau data. The upshot is that Canada runs a $63.3bn trade surplus with the US.
Canada’s key exports to the US include oil and mineral fuels, cars and auto parts, as well as industrial machinery and nuclear reactors. On the other hand, it imports large amounts of transportation equipment, industrial chemicals and manufacturing technology from the US.
US President Donald Trump and Canada’s Prime Minister Mark Carney tal …
