US President Donald Trump Imposes 35% Tariffs on Canada; 15-20% Tariffs On Blanket Partners

New Delhi (India) July 11: On Thursday, US President Donald Trump announced a 35% tariff on Canadian imports that would go into effect on August 1st. Trump described it as a reaction to "Canada's retaliation" and the continued trade restrictions.

The president of the United States also declared his intention to apply general tariffs of 15–20% to the majority of other trading partners.

Trump gave his justifications for the steep tariff hike in an official letter that was shared on Truth Social. He accused Canada of unfair trade practices and of not cooperating on important issues, including the flow of fentanyl into the US.

CANADA'S RESPONSE 

Canadian Prime Minister Mark Carney responded to the action by defending Canada's trade policy and anti-fentanyl initiatives. 

He said, "Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1.”

He added, "Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries” in a post on social media platform X.

TRUMP ON BLANKET TARIFFS 

Trump stated in a Thursday interview with NBC News that other trading partners who have not yet received these letters will probably be subject to blanket tariffs. 

He said, “Not everybody has to get a letter. You know that. We're just setting our tariffs." 

He added, "We're just going to say all of the remaining countries are going to pay, whether it's 20% or 15%. We'll work that out now.”

The US President emphasised in his letter that the US would maintain its trade relationship with Canada but on updated terms.

The letter read, "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."

The letter also stated that the administration will help Canadian businesses obtain rapid regulatory approvals if they decide to relocate their operations to the US.

Trump asserted that the new tariff policy was a result of Canada's inability to prevent fentanyl from entering the US.

He said, "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 added that goods transshipped to avoid this higher tariff will be subject to that higher tariff. He cautioned against methods to evade it through transshipment.

TRUMP CONDEMNS CANADA

Trump also criticised Canada's long-standing "extraordinary" dairy export tariffs. He blamed them for the US trade deficit.

He presented the trade imbalance as a national security issue as well as an economic one. He stated, "The Trade Deficit is a major threat to our Economy and, indeed, our National Security."

A 50% tariff on Brazilian imports is one of the new tariff rates that Trump has so far announced in letters to 22 nations. Additionally, he declared that imports of copper would be subject to a 50% tariff starting on August 1.

Aadrika Tayal