President Donald Trump signed an executive order on Thursday increasing tariffs on Canadian goods to 35% from 25%, the White House said.
The new rates goes into effect on Friday.
"In response to Canada's continued inaction and retaliation, President Trump has found it necessary to increase the tariff on Canada from 25% to 35% to effectively address the existing emergency," the White House said.
There are at least four key reasons for the new action being taken against Canada, Trump has said:
- As reported by both Forbes and The Associated Press, one is the alleged failure by Canada to sufficiently curb fentanyl trafficking across the northern border, even though fentanyl imports from Canada statistically appear to account for only a fraction of total seizures.
- The second cited factor, as reported by The Independent: Canada is charging American farmers extremely high retaliatory tariffs on dairy and other agricultural goods..
- Time and Business Insider have also mentioned a deepening trade deficit as a Trump-cited factor, one estimated at roughly $63 billion.
- Political and diplomatic factors: Trump has pointed to Canada’s decision this week to recognize Palestinian statehood as undermining trust in trade negotiations. Israel remains on a war footing in Gaza after the militant group Hamas launched a deadly attack on the Israeli homeland two years ago, and Israeli leaders are continuing to float the idea of fully annexing the Gaza Strip, home to close to 2 million Palestinians.
Girding for the continuing tussle with the U.S., Canadian Prime Minister Mark Carney has reaffirmed resolute support for Canadian workers and businesses, while continuing negotiations, all while signaling that a Friday trade deal is unlikely, Reuters said.
Media outlets say Canada is also accelerating internal reforms, including dismantling longstanding interprovincial trade barriers, to bolster the nation economically and cut reliance on U.S. markets.
Reports also note that Canada has taken legal steps at the World Trade Organization challenging the U.S. actions, citing violations of commitments to the USMCA trade pact involving Mexico, Canada and America, and WTO rules.
Newsmax staff and wire services added to this report.
© 2025 Thomson/Reuters. All rights reserved.