President Donald Trump is increasing the tariff on Canada from 25% to 35% beginning on Friday, after the U.S. neighbor to the north failed to help curb the imports of fentanyl and other illicit drugs.
The White House noted Trump signed an executive order on Thursday to increase the tariff in an effort to hold Canada accountable for its role in the flow of illicit drugs into the U.S.
Additionally, Trump signed another executive order on Thursday to modify the reciprocal tariff rates for some countries to further address the United States’ trade deficits.
The action reflects Trump’s efforts to protect the U.S. from foreign threats to national security and the economy by securing “fair, balanced and reciprocal trade relationships,” the White House said.
TRUMP THREATENS 35% TARIFF ON CANADA GOODS OVER DANGEROUS CROSS-BORDER FENTANYL DISPUTE
The president announced an additional 10% tariff on all countries, though he also announced higher tariffs for countries the U.S. has large trade deficits with, on April 2, and they became effective on April 9.
Trump and his team have since made several trade deals with several countries.
For instance, the U.S. struck a deal with the European Union in which the EU agreed to purchase $750 billion in U.S. energy and make new investments of $600 billion by 2028. The EU also agreed to accept a 15% tariff rate.
TRUMP ANNOUNCES SWEEPING 50% TARIFF ON BRAZILIAN IMPORTS STARTING AUG. 1
The U.S. also made a deal with Japan, which agreed to invest $550 billion in the U.S. to rebuild and expand core American industries. Japan also agreed to further its own market to U.S. exports, and like the EU, Japan agreed to pay a baseline 15% tariff rate.
A list of modified reciprocal tariffs from the White House shows that Syria will face a 41% tariff, while Myanmar and Laos will be charged a 40% tariff.
Switzerland will be required to pay a 39% tariff; Serbia and Iraq will be charged a 35% tariff; and Algeria, Bosnia and Herzegovina, Lybia and South Africa will be charged a 30% tariff.
The White House said Trump is using tariffs as “a necessary and powerful tool to put America first after many years of unsubstantiated trade deficits that threaten our economy and national security.”
TRUMP ANNOUNCES HIGHER TARIFF RATES FOR MORE COUNTRIES IN LETTERS PUBLISHED ON SOCIAL MEDIA
One threat to the U.S. is the flow of fentanyl from both Mexico and Canada.
Earlier this month, Trump threatened to impose the 35% tariff on Canadian goods on Aug. 1, after accusing Canada of failing to stop the flow of fentanyl into the country, and instead retaliating with its own tariffs.
According to U.S. Customs and Border Protection (CBP), 74 pounds of fentanyl have been seized at the northern border in fiscal year 2025.
The White House said Mexican cartels are operating fentanyl- and nitazene-synthesis labs in Canada.
The Trump administration also claimed Canada-based drug trafficking organizations maintain “super labs,” in rural and dense areas in western Canada. Some of the labs can produce 44 to 66 pounds of fentanyl per week.
TRUMP ANNOUNCES 25% TARIFFS ON JAPAN, SOUTH KOREA
In a letter to Canadian Prime Minister Mark Carney earlier this month, Trump 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.
Trump warned Canada that beginning Aug. 1, the U.S. would charge Canada a tariff of 35% on Canadian products sent into the U.S., separate from all sectoral tariffs. He also said any goods shipped in a way that evades the 35% tariff, Trump said, will be subject to the higher tariff.
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.
