Trump warns Canada to face 35% tariff hit from Aug 1

Canada‑US trade talks risk missing July 21 deadline

President Donald Trump warned Canada of a 35 % tariff on U.S. imports starting August 1, rising the number of threats issued by the U.S. president in the past week.

Background on the USMCA agreement

• The United States‑Mexico‑Canada Agreement replaced NAFTA in July 2020 after Trump pushed for a renegotiation during his first term.
• Canada and Mexico were hit by initial 25 % U.S. tariffs, with lower rates for Canadian energy.
• Trump cited inadequate action on illegal immigration and drug flow, promising exemptions for goods under the USMCA for a broad range of products.

Impact on Canadian products

Potash, a fertilizer used by Canadian growers, received a reduced tariff rate after the U.S. exempted certain goods entering the United States.

Relations between Trump and Carney in recent months

Despite the warnings, Prime Minister Mark Carney met Trump in the Oval Office on May 6 and again at the G7 summit in Canada last month, where leaders pressured the president to back away from a harsh trade war.

Next steps for Canada and Mexico

Both countries are exploring ways to satisfy Trump’s demands, hoping to put the free‑trade deal uniting the three nations back on track before the July review date.