Trump threatens 35% tariff on Canadian goods over dangerous cross-border fentanyl dispute

President Donald Trump is threatening to impose an additional tariff of 35% on Canadian goods on Aug. 1, after accusing the U.S. neighbor to the north of failing to stop the flow of fentanyl into the country and instead retaliating with its own tariffs.

In a letter to Canadian Prime Minister Mark Carney on Thursday that Trump posted on Truth Social, he said it was a great honor to send a letter demonstrating the strength and commitment of the U.S. and Canada’s trading relationship. But he also pointed to a relationship gone sour, stating that the U.S. has agreed to continue working together, despite Canada imposing tariffs against the U.S.

“As you will recall, the United States imposed Tariffs on Canada to deal with our Nation’s Fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our Country,” Trump wrote. “Instead of working with the United States, Canada retaliated with its own tariffs. Starting August 1, 2025, we will charge Canada a Tariff of 35% on Canadian products sent into the United States, separate from all Sectoral Tariffs.

Any goods shipped in a way that evades the 35% tariff, Trump said, will be subject to the higher tariff.

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“As you are aware, there will be no Tariff if Canada, or companies within your Country, decide to build or manufacture product within the United States and, in fact, we will do everything possible to get approvals quickly, professionally, and routinely – In other words, in a matter of weeks,” the president said.

“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,” he continued.

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Trump then turned his attention to the “extraordinary Tariffs” Canada imposes on dairy farmers, which the president said is upwards of 400%, assuming U.S. farmers can sell their products to the people of Canada.

“If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump wrote. “These Tariffs may be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with the United States of America.”

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Earlier this year, President Trump imposed 25% tariffs on Canadian steel, automobiles and other goods not covered under the U.S.-Mexico-Canada Agreement.

Canada retaliated by imposing $43 billion worth of its own tariffs against the U.S.

Trump announced the tariffs on his first day in office in January after declaring fentanyl deaths a national emergency. 

He said the drug makes its way from China to the U.S. via Mexican and Canadian imports. 

Fox News Digital’s Charles Creitz contributed to this report.