Trump hits Canada with 35 percent tariff

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Welcome to The Hill’s Business & Economy newsletter

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Business & Economy

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The Big Story

Trump to hit Canada with 35 percent tariff

President Trump announced his administration would impose a 35 percent tariff on all Canadian goods beginning next month.

Trump posted a letter sent to Canadian Prime Minister Mark Carney in which he outlined the upcoming tariffs. This week, Trump has posted letters to more than a dozen countries vowing to impose steep tariffs on their imports starting Aug. 1.

The president argued Canada had not done enough to curb the flow of fentanyl into the United States, even though relatively little fentanyl crosses the northern border each year compared with the southern border.

“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote to Carney. “These Tariffs may be modified, upward or downward, depending on our relationship with your Country.”

The U.S. had previously imposed a 25 percent tariff on Canadian goods, though Trump later exempted products covered under the 2020 trade agreement struck between the U.S., Canada and Mexico. It’s unclear whether those exemptions will still apply as of Aug. 1.

The Hill’s Brett Samuels has more here.

Welcome to The Hill’s Business & Economy newsletter, I’m Aris Folley — covering the intersection of Wall Street and Pennsylvania Avenue.

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