WASHINGTON – President Donald Trump dramatically escalated his global trade war late Thursday, threatening to impose a new 35% tariff on all goods imported from Canada and suggesting in a separate interview that he may double the blanket tariff rate charged to most other nations.
The twin threats, delivered just weeks before a series of trade deadlines, represent a significant escalation in the administration’s aggressive and often unpredictable trade policy. The move targeting Canada, one of America’s largest and most integrated trading partners, sent a shockwave through the business community and signals a new, more confrontational phase in the ongoing negotiations between the two countries.
It was not immediately clear if the new 35% tariff, which President Trump indicated would take effect on August 1, would apply to all Canadian goods or only a select list. The threat was delivered in one of nearly two dozen letters the White House has dispatched to world leaders over the past week, outlining the tariff rates their countries will face if trade deals are not reached.
In a statement posted to the social media platform X, Canadian Prime Minister Mark Carney said his government would not back down. “Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses,” Carney wrote. “We will continue to do so as we work towards the revised deadline of August 1.”
The threat against Canada is particularly significant given the immense volume of trade between the two nations. Canada is the top destination for U.S. exports, buying $349 billion worth of American goods last year. It is also the third-largest source of U.S. imports, sending $413 billion worth of goods south of the border. Economists warn that new tariffs would almost certainly lead to retaliatory measures from Canada, potentially sparking a damaging cycle that would raise prices for consumers and businesses in both countries.
Adding to the economic uncertainty, Trump suggested in an interview with NBC News’ “Meet the Press” that the 10% blanket tariff currently imposed on most foreign goods could soon jump.
“We’re just going to say all of the remaining countries are going to pay, whether it’s 20% or 15%. We’ll work that out now,” Trump told moderator Kristen Welker, according to NBC News.
The relationship with Canada has been a frequent target of Trump’s trade actions. In November 2024, shortly after his election, he pledged 25% tariffs on all goods from Canada and Mexico. After a brief pause, those tariffs went into effect in March but were significantly blunted by exemptions for goods compliant with the US-Mexico-Canada (USMCA) trade agreement. The latest threat appears to be a much broader and more severe measure, creating a new level of uncertainty for North American supply chains as the August 1 deadline approaches.
