Trump announces 35% tariffs on Canadian goods starting August 1

President Donald Trump announced Thursday night that the United States will impose 35% tariffs on imports from Canada starting August 1, reviving tensions with one of the largest trading partners that had somewhat eased in recent weeks.

The US president accused Ottawa of retaliating with tariffs against Washington. "Instead of working with the United States, Canada retaliated with its own tariffs," Trump wrote in a letter to Prime Minister Mark Carney, which he shared on social media.

Trump attributed the flow of fentanyl from the neighboring country as one of the reasons for taking this measure, even though the amount of this opiate reaching the U.S. from the northern border is much smaller than that entering through the south.

"If Canada works with me to stem the flow of fentanyl, perhaps we will consider adjusting this letter," he argued. He clarified, however, that this issue is just one of the elements complicating the relationship, among which he cited non-monetary taxes and barriers that cause "an unsustainable trade deficit."

He also specified that these 35% tariffs are separate from sector-specific levies, while furthering his threat of further increases if Canada continues its retaliation.

"If for any reason you decide to raise the tariffs, then whatever number you choose, that amount will be added to the 35% we charge," he specified.

The White House clarified that the exception remains in place for products that are part of the free trade agreement signed by the U.S., Canada, and Mexico.

This letter came after the two countries agreed on June 29 to continue negotiations. July 21 was on the horizon as a possible date for a deal, according to a statement from the Canadian Department of Finance.

Trump had threatened to shut down negotiations with Canada after Ottawa pledged to maintain the digital services tax on US technology companies. Canada later withdrew the tax to facilitate the resumption of negotiations.

The US president confirmed on Tuesday that he was postponing the so-called reciprocal tariffs on dozens of nations until August 1, extending the 90-day trade truce he declared in April by three more weeks. Since then, however, this week he has published nearly two dozen letters addressed to the leaders of various countries with his new tariff proposal. One of the pending letters was the one he promised to send to the European Union (EU).

It's increasingly clear that Trump is using tariffs as a form of power, as a weapon of massive global coercion, rather than as a trade tool. Countries now understand that any proposal is subject to modification based on the American leader's interests.