United States threatens sweeping 35% tariff on Canadian goods

Updated July 11, 2025

On July 10, 2025, U.S. President Donald Trump released a public letter addressed to Prime Minister Mark Carney threatening to impose a 35% tariff on all Canadian goods entering the United States, effective August 1, 2025. Trump indicated the tariffs would be lifted only if Canadian firms move production to the U.S., and warned that retaliatory actions by Canada would result in even higher levies.

New threats include a 50% tariff on Canadian copper, a sector that exported $9.3B to the U.S. in 2023.

The proposed tariffs would apply across the board, posing significant risks to Canadian exporters, jobs, and industries — especially in manufacturing, steel, aluminum, and automotive.

The proposed 35%  tariff on imports from Canada may not apply to goods that comply with the Canada-U.S.-Mexico Agreement (CUSMA), a Trump administration official has told media outlets.

The move comes as both nations continue negotiations on a trade agreement, with a deadline of July 21, 2025, to avoid the tariffs. Prime Minister Carney and Foreign Affairs Minister Anita Anand have reaffirmed Canada’s commitment to protecting Canadian workers and industries while actively negotiating a resolution.

The Government of Canada is expected to hold further negotiations ahead of the July 21 deadline. The business community, workers, and key stakeholders are urged to monitor developments closely.

From the Prime Minister’s Office (PMO)

Prime Minister Mark Carney responded via social media, stating: “We are committed to defending Canadian workers and businesses. While negotiations continue, we are also strengthening our global trade partnerships.”