US President Donald Trump announced on Thursday that he will put a 35% tax (called a tariff) on products coming from Canada. This new rule will start on August 1. This decision has made the relationship between the US and Canada even more tense.

Trump said he took this step because he thinks Canada has been unfair in trade and has not helped stop illegal drugs, like fentanyl, from entering the US. He also said he plans to put a 15% to 20% tax on goods from many other countries as well. In a letter he posted on social media, Trump said Canada has not worked well with the US on important issues. He said Canada’s actions hurt American workers and businesses.

Canada’s Prime Minister Mark Carney responded quickly. In a post on X (Twitter), he said that Canada has always worked to protect its workers and companies during trade talks with the US. He promised that Canada will continue to do this before the new tax starts on August 1.

Carney also said that Canada has worked hard to stop fentanyl from spreading in North America and will keep working with the US to save lives and protect people in both countries. This new tax might make Canadian goods more expensive in the US, and it could also affect businesses and workers on both sides of the border. It could lead to more arguments and problems in trade between the two countries in the coming weeks.

Carney said Canada is working to make its economy stronger and build better trade ties around the world. He said Canada is united and has big new projects planned that are good for the whole country. Meanwhile, Trump has sent letters to 22 other countries about new tariffs. For example, he announced a 50% tax on goods from Brazil and on copper imports, starting August 1.

Fentanyl and trade gap

Trump said the US will keep trading with Canada but under new rules. From August 1, 2025, the US will put a 35% tax on Canadian products. He also warned that if companies try to avoid this tax by sending goods through other countries, they will still be taxed.

Trump warns Canada

Trump warned that if Canada raises taxes on US products, he will add even higher taxes on Canadian goods. He also complained that Canada charges very high taxes on US dairy products (up to 400%) and said this trade imbalance is a danger to the US economy and national security.

Trump also said that if Canadian companies move their businesses to the US, the government will help them get all needed approvals quickly, in just a few weeks.

Trump plans more tariffs

Trump said he will soon send tariff letters to the European Union and maybe to Canada by Friday. In an interview with NBC News on Thursday, he said other countries that haven’t received letters yet will still have to pay new tariffs. He explained that not every country needs a letter because the US will simply set the new taxes. He said these tariffs might be 15% or 20%, and they will decide the exact numbers soon. Trump also claimed that people support these tariffs and pointed out that the US stock market reached a new high on the same day.