The American leader Donald Trump launched an unprecedented trade offensive against Canada, announcing the introduction of drastic tariffs of 35% on Canadian goods, effective August 1. In an official letter to Prime Minister Justin Trudeau, the president issued an ultimatum related to countering illegal fentanyl trafficking.
In a document published on the social platform Truth Social, Trump emphasized that the new trade restrictions could be reviewed if Canada takes effective measures to stop drug trafficking. Fentanyl - an extremely dangerous and highly addictive opioid medication - is at the center of the trade dispute between the two countries.
The new tariffs are in addition to existing trade restrictions, including 50% tariffs on steel and aluminum imports, 25% on vehicles, and 50% on copper. Trump unambiguously warned that any retaliatory move by Canada would lead to further increases in customs duties.
Negotiations between the US and Canada were temporarily frozen on June 29, after the Canadian government introduced a 3% tax on digital services. Subsequently, negotiations were resumed after Canada withdrew its initial proposal.
Trade volumes between the two countries are significant - in 2024 they amount to 761 billion dollars, with the US trade deficit towards Canada being 62 billion dollars. The first five months of 2025 show an additional increase in the deficit by 9.8% compared to the previous year.
This aggressive trade policy of Trump is not limited to Canada - just a week earlier, the president announced tariffs up to 40% on goods from various countries, including 50% tariffs on Brazilian goods.