U.S. President Donald Trump announced a 35% tariff on Canadian imports, effective August 1, citing Canada’s alleged role in fentanyl trafficking and retaliatory trade actions. He warned of further increases if Ottawa retaliates. Canada’s Prime Minister Mark Carney responded, highlighting progress in fighting fentanyl and a commitment to cooperative efforts with the U.S.

The new tariff is in addition to existing duties, including 50% on steel and aluminum, 25% on autos, and a 50% levy on copper starting August 1.Trump accused Canada of unfair trade practices and causing a trade deficit he calls a threat to U.S. national security.

The announcement follows the resumption of trade talks, after Canada agreed to suspend its digital services tax. In return, Canada had previously imposed 25% counter-tariffs on certain U.S. goods, which remain in place.