US Canada Tariff: Donald Trump imposed 35 percent tax on Canada, again dropped tariff bomb on neighbor, also threatened..

US President Donald Trump has once again started wielding his tariff whip. On Thursday, he imposed tariffs on his neighbouring country, Canada. Trump has announced a 35% tariff on Canadian products. This new import duty will come into effect from August 1, 2025, and will affect every Canadian item imported into the US. Trump has described it as a step taken in response to 'Canada's retaliation' and trade barriers. Earlier, a 50 percent tariff was imposed on Brazil.

Trump issued an official letter in the evening expressing displeasure over Canada and wrote, 'We will continue to trade with Canada, but now under new rules.' In the letter, he particularly made an issue of the supply of deadly drugs like fentanyl in the US and the trade imbalance in the dairy sector. According to Donald Trump, 'Canada imposes up to 400% tax on our dairy farmers, even when they are allowed to sell in Canada.' He called it not just an economic loss but a matter related to national security. 'Trade deficit is a threat not only to our economy but also to our national security.'

Trump warns Canada

Donald Trump has shocked Canada by imposing tariffs, but has also threatened it. In his letter, Trump clearly said that if Canada imposes any retaliatory tariff on American imports, then the US will recover that increase as well by adding it above 35%. He also talked about thwarting any attempt to evade tax through transshipment. Transshipment means, instead of sending a consignment directly from one country to the destination country, first unloading it in a third country and then sending it further from there.

Earlier, the Trump administration had also announced to impose new tariffs on products coming from seven more countries, Sri Lanka, Algeria, Iraq, Libya, the Philippines, Moldova, and Brunei from August 1, 2025. In the official letters sent to these countries, it has been clarified that America will levy a duty of up to 30% on goods coming from Sri Lanka, Iraq, Algeria and Libya, while 25% tariff will be imposed on products coming from Moldova and Brunei and 20% tariff will be imposed on imports from the Philippines. Trump has also warned that if these countries increase retaliatory taxes on American products, then the same amount of increase will be added to the American tariff.

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