Trump Slaps 35% Tariff on Canada, Citing Fentanyl Crisis and Trade Disputes

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trump tariff canada update

In a dramatic move, U.S. President Donald Trump has imposed a 35% tariff on a wide range of Canadian goods, blaming Canada for contributing to the ongoing fentanyl crisis and for what he calls unfair trade retaliation. The new tariffs apply to products not protected under the USMCA trade agreement.

Trump claimed that Canada has failed to take sufficient action against the smuggling of fentanyl into the U.S. and accused Canadian leaders of economic hostility. In a strongly worded statement, Trump warned that unless Canada cracks down on cross-border drug flows and reverses its trade stance, the tariffs will remain in place or could even increase.

Canadian Prime Minister Mark Carney responded by expressing deep disappointment, stating that Canada has already taken significant steps to combat illegal drug trafficking and that its contribution to the U.S. fentanyl problem is minimal. He described the tariff hike as politically motivated and economically harmful to both nations.

The Canadian government is now exploring legal and diplomatic options to challenge the tariff decision while assuring businesses and workers of support. Analysts warn that the move could strain U.S.-Canada relations and disrupt trade in key sectors like steel, aluminum, lumber, and auto parts.

Also Read: Air Canada Flight Attendants Strike 2025 – What It Means for Travelers and Trade

Talks between Canadian and U.S. trade officials have reportedly stalled, with no immediate resolution in sight. As the economic standoff escalates, industries on both sides of the border brace for uncertainty.

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