Tariffs Tensions Rise: Trump Slams Canada with 35% Tariff Over Fentanyl Dispute
President Donald Trump has signed an executive order increasing the tariff on Canada from 25% to 35%, effective August 1, 2025, citing Canada’s failure to curb the flow of fentanyl and other illicit drugs into the US. The White House stated that Canada’s inaction and retaliation necessitate this move to protect American lives and national security. The new tariff aims to hold Canada accountable for its role in the opioid crisis, particularly with Mexican cartels operating fentanyl labs in Canada and Canada-based drug trafficking organizations maintaining “super labs” producing significant quantities of fentanyl.
The US has seized 74 pounds of fentanyl at the northern border in fiscal year 2025, and the Trump administration claims Canada’s lack of cooperation has exacerbated the crisis. Trump’s executive order also modifies reciprocal tariff rates for some countries to address the US’ trade deficits, reflecting his efforts to secure “fair, balanced and reciprocal trade relationships”. Countries like Syria, Myanmar, and Laos will face tariffs of 41% and 40%, respectively, while Switzerland, Serbia, and Iraq will be charged 39% and 35% tariffs.
Canadian Premier of Ontario Doug Ford has responded, urging the federal government to stand strong against the tariffs and consider imposing a 50% tariff on US steel and aluminum. Ford emphasized Canada’s importance as America’s number one customer, keeping millions of Americans working, and stressed the need to protect workers, businesses, and communities from the impact of tariffs. The Canadian government has imposed $43 billion worth of tariffs against the US in response to earlier tariffs on Canadian steel, automobiles, and other goods.
