Source: Manufacturing Dive 
Date: 11th July 2025

The U.S. will impose a 35% tariff on imports from Canada, effective August 1, as outlined in a recent letter from the U.S. President. This move is part of a broader series of trade actions in response to Canada’s retaliatory tariffs on U.S. goods, particularly following the 25% tariffs the U.S. imposed in February. The President also cited concerns over the importation of fentanyl and trade imbalances in dairy products as factors influencing the decision.

Since early March, imports from Canada not in compliance with the United States-Mexico-Canada Agreement (USMCA) have been subjected to a 25% tariff. Still, the President’s latest letter does not clarify if the new 35% tariff will replace this or if the USMCA exemption will remain. Trade experts have raised questions about the practical implications and administration of this new tariff, especially regarding the timing of negotiations and potential pressure on Canada to finalize a deal.

Canada has responded to U.S. tariffs with its levies on various products, including matching U.S. tariffs on steel, aluminum, and automotive parts. Amid these tensions, both countries are engaged in ongoing trade talks, with a new deadline set for August 1. The Canadian government remains committed to defending its workers and businesses while working towards resolving the trade issues before the new deadline.