Explaining Trump's latest tariff moves
President Trump on Thursday threatened to impose 35% tariffs on goods from Canada starting next month, hiking import duties on one of the U.S.'s largest trading partners.
The president announced the 35% tax in a letter to Canadian Prime Minister Mark Carney posted to Truth Social, citing Canada's alleged "failure to stop the drugs from pouring into our country," as well as retaliatory tariffs Canada has imposed on U.S. goods. The new tariffs are set to take effect Aug. 1, the president said.
The move is an escalation from the 25% tariffs on Canadian — and Mexican — imports announced by Mr. Trump shortly after taking office. He later exempted goods covered by the U.S.-Mexico-Canada Trade Agreement, which was negotiated during Mr. Trump's first term. It's unclear whether the same exemption will apply to next month's 35% tariffs.
Mr. Trump has sent similar letters to the leaders of more than 20 other countries this week, telling them to expect higher tariffs starting next month.
But Canada is the largest American trading partner to receive a letter so far. Canada was the world's largest buyer of American goods and the third-largest seller of goods to the U.S. last year, according to Census Bureau data. The country bought some $350 billion worth of American goods and sold $412 billion to the U.S. market in 2024.
This is a breaking story; it will be updated.
Joe Walsh is a senior editor for digital politics at CBS News. Joe previously covered breaking news for Forbes and local news in Boston.
