President of U.S.A has threatened Canada with with 35% tariff on Canadian goods up from current 25%. Trump announced this on his own Truth Social account. We can see a letter from him to Canadian PM Mark Carney that US will raise tariff on Canadian Imports starting August 1, 2025.
The Trump Administration how ever clarified that USMCA compliant goods are exempt such energy ,fertilizer and other critical imports. USMCA is trade agreement between USA, Mexico and Canada.
Trump argues that Canada has unfair trade practices over USA , fentanyl trafficking concerns and financial retaliation by Canada against earlier U.S. tarrifs.
The Canadian PM has responded and warned that the new increased tariffs could potentially violate the important current USMCA trade agreements and hurt both nation’s economies. PM said that they are open to diplomacy but also signaled retaliatory tariffs or legal action under current international trade laws.