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Trump orders a 35% tariff for goods from Canada, citing a lack of cooperation on illicit drugs

TERESA CEROJANO
August 01, 2025

WASHINGTON (AP) -- U.S. President Donald Trump has raised the tariff rate on U.S. imports from Canada to 35% from 25%, effective Friday.

The announcement from the White House late Thursday said Canada had failed to "do more to arrest, seize, traffickers, criminals at large, and illicit drugs."

Trump earlier had threatened to impose the higher tariff on Canada if no deal was reached by Friday, his deadline for reaching trade agreements with dozens of countries.

Canada was not included in Trump's updated list of tariff rates on other countries announced late Thursday. Those import duties are due to take effect on Aug. 7.

Prime Minister Mark Carney had tempered expectations, saying Ottawa will only agree to a deal "if there's one on the table that is in the best interests of Canadians."

In a subsequent statement, released just after midnight, he said he was disappointed by the actions and that "Canada accounts for only 1% of U.S. fentanyl imports and has been working intensively to further reduce these volumes."

He added that some industries -- including lumber, steel, aluminum and automobiles -- will be harder hit, but that the government will try to minimize the impact and protect Canadian jobs.

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